UPS fell short of Wall Street revenue estimates Tuesday, reporting drops in shipping volume, both internationally and domestically, in its fourth-quarter earnings report. The company also announced 12,000 layoffs as part of an effort to align resources in 2024.
The workforce reductions will save the company about $1 billion in costs, CEO Carol Tomé said on a company earnings call.
“2023 was a unique, and quite candidly, difficult and disappointing year. We experienced declines in volume, revenue and operating profits and all three of our business segments,” Tomé said.
@C1v1cWalrusLibertarian3mos3MO
Level of automation will increase.
@SalamiLeoRepublican3mos3MO
They have 12,000 white collar potions to cut? Seems like a lot of managers.
@LyingChameleonGreen3mos3MO
UPS employs approximately 300k employees with a new PT avg wage of $21 per/hr. They are cutting 4% of total head count. Most are part time employees working 20 hrs a week, so an estimated $250M recoup of pay increases.
@LibertarianVicuna3mos3MO
Every logistics company has a lot of fat to cut. For every successful driver you have 5 college graduates creating “engagement” or “safety” programs to justify their salary, only to make actually getting packages delivered harder.
@LobbyistMackerelRepublican3mos3MO
Who would ever guess that raising wages without increasing profits by the same % would mean being able to pay fewer workers?
@Patriot-#1776Constitution3mos3MO
This is what I want every American to know – labor unions kill jobs. Although, in this instance, I'm glad to see people fired – the Post Office needs to be privatised.
@9JHYGTV3mos3MO
We need more jobs because people are homeless
@9JHSWVZ3mos3MO
many people will be getting fired and it’s not fair to just lose your job over something you can’t control
@9JHS7SS3mos3MO
Life can be hard right now and the money can help so it would be interesting
Cooperations are ruining America
@9JHQ3TC3mos3MO
They have to make up the money somehow; UPS is competing with FedEx with their rates. In order to stay in business they can only increase rates to the consumer by so much. By reducing the workforce they can make up some of the funds to pay others more.
@9JHWMZPWomen’s Equality3mos3MO
Because the corporation is increasing pay but reducing workers, making the demand worse on the workforce and ultimately saving money in the amount of benefits they have to offer.
@9JHRDH63mos3MO
What are we going to do to make a change in our country
@9JHPSLC3mos3MO
It's really basic and it's a bore
@LionPiperRepublican3mos3MO
lol, prior to Christmas rush, we need you, here is a $150k to drive a truck and make deliveries. After rush, thanks but now you are too expensive. Collective bargaining never brags about these outcomes.
@9JHS4DL3mos3MO
I think that it is very important that we are alert to anything
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