The move was a sharp reversal for Deutsche Post, the German company that owns DHL, which had said that it was planning to maintain its American operations by turning over its domestic air-cargo service to its rival United Parcel Service.

Image DHL planes at the companys airport in Wilmington, Ohio. DHL had hoped to become a stronger rival to United Parcel Service. Credit... Tom Uhlman for The New York Times

The express package business has been suffering under the sharp economic downturn: express shipments in the United States carried by the top three companies fell in the third quarter for the first time since the 2001 recession.

The company, which cut 5,400 jobs this year at DHL, will discontinue its domestic-only air and ground services in January to focus entirely on its more lucrative international offerings. DHL said it would close its U.S. Express ground hubs and reduce the number of stations to 103, from 412. It said it would retain 3,000 to 4,000 employees to serve its international express customers.

The deepest cuts will be at the Wilmington hub, which DHL acquired in 2003 and expanded with the help of local and state incentives. DHL operates the hub in conjunction with Astar Air Cargo and ABX Air, both of which will most likely cease operations there when DHL leaves.

Clinton County, where Wilmington is the county seat, is facing a $2 million gap in a $14.5 million budget because of the loss of tax revenue. “We’re going to be taking 2009 needs and trying to fund them with 2005-level revenues,” said Randy Riley, the county commission president.