UPS to chop 12,000 jobs, citing softer demand and better labor prices


UPS plans to chop 12,000 jobs as part of a plan to save lots of $1 billion in prices, executives stated Tuesday.

The layoffs will remove round 2.4 p.c of its international workforce of roughly 495,000, with about 75 p.c of the job reductions coming within the first half of 2024. Executives stated they don’t anticipate these jobs to return.

“It’s a change in the way in which we work,” chief monetary officer Brian Newman informed buyers. “In order quantity returns to the system, we don’t anticipate these jobs to return again. It’s altering the efficient method we function.”

The corporate’s enterprise has suffered, logging income of $24.9 billion within the fourth quarter of 2023, down 7.8 p.c from the identical interval the yr earlier than, with executives citing softer demand.

Chief govt Carol Tomé stated in an announcement that 2023 “was a novel and tough yr and thru all of it we remained centered on controlling what we may management, stayed on technique and strengthened our basis for future progress,”

Executives additionally pointed to greater labor prices. UPS final summer season reached a new deal with the Teamsters that included raises of as much as 55 p.c over 5 years for sure employees.

The corporate’s gross sales outlook for 2024 additionally disenchanted buyers. The corporate projected income between $92 billion and $94.5 billion, a rise of 1 p.c to three.8 p.c, however analysts had anticipated the outlook to be greater, in response to information experiences referencing monetary information supplier Refinitiv.

UPS inventory was down 7.8 p.c by midmorning.

It is a creating story and will probably be up to date.



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