#Socialites, get into this: UPS, one of the world’s largest package delivery companies just announced that it will be laying off 12,000 of its employees.
This decision comes as UPS released a revenue outlook for the year that fell short of Wall Street’s expectations, causing its shares to plummet. In addition to the layoffs, UPS also hinted that it may put its Coyote truck load brokerage business up for sale. This move is part of the company’s effort to align its resources with its strategic goals and focus on what is “wildly important,” as CEO Carol Tome stated on a conference call.
The layoffs are expected to result in $1 billion in cost savings for UPS. While this decision may be necessary for the company’s financial health, it is unfortunately a difficult one for the employees affected. UPS has been a major employer, and these job cuts will have a significant impact on many individuals and their families. Furthermore, on the conference call this Tuesday morning, Tome also said that those who are continuing at UPS will be ordered to return to the office five days a week this year…
“We are going to fit our organization to our strategy and align our resources against what’s wildly important,” Tome said.
This news comes after the Teamsters, the labor union representing UPS workers, approved a tentative contract agreement with the company in September. The agreement put an end to contentious labor negotiations that had the potential to disrupt package deliveries for millions of businesses and households across the country.
Under the new union contract, UPS drivers will earn an average of $170,000 in annual pay and benefits by the end of the deal. The agreement was also expected to create more full-time jobs and ensure air-conditioning in new trucks. However, despite these positive aspects, UPS still found it necessary to make significant job cuts.
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More On UPS
The company’s revenue outlook for 2024 is projected to be in the range of approximately $92 billion to $94.5 billion, falling short of analysts’ expectations. This, coupled with the layoffs, indicates that UPS is facing challenges in a market that is experiencing slower economic growth.
UPS is not alone in making job cuts in 2024. Several other major U.S. companies have also announced layoffs as they navigate an uncertain economic landscape. While the layoffs at UPS are undoubtedly a setback for the affected employees, the company’s focus on aligning its resources with its strategic goals is a necessary step for its long-term success.