United Parcel Service To Cut 12,000 Jobs

(RTTNews) - United Parcel Service Inc. (UPS) has announced plans to cut 12,000 jobs.

The jobs reductions, about 14% of 85,000 full- and part-time managers, will save $1 billion this year and more in subsequent years, CEO Carol Tome said on an earnings conference call on Tuesday.

She also said the company plans to ask workers to return to the office five days a week in 2024.

"2023 was a unique and difficult year," CEO Tome said in a statement. "Through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth."

UPS reported a fourth-quarter profit of $1.61 billion or $1.87 per share, down from $3.45 billion or $3.96 per share a year ago. Excluding one-time items, earnings were $2.47 per share, 31.8% below the same period last year.

Revenue for the quarter declined to $24.92 billion or $27.03 billion in the previous year.

UPS also issued a disappointing sales outlook for this year, saying it expects global revenue of between $92 billion to $94.5 billion, compared to $91 billion reported for 2023.