Looking to get its express delivery business losses in North America out of the red, DHL is doing away with at least 1,500 jobs and hiring Brown for air-cargo services.
Under the agreement, parent Deutsche Post will pay UPS a $1bn a year for 10 years to carry shipments in North America. Deutsche Post officials say they expect to save a $1bn a year by hiring the business rival.
DHL is third in the North American overnight delivery business, behind UPS and FedEx, but it has yet to turn a profit. On the other hand, DHL's global express business is in the black.
The deal affects only the movement of packages, mostly between airports, not pickup or delivery of DHL parcels to its customers.
Visit www.dhl.com and www.ups.com
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