OAN’s James Myers
8:51am – Tuesday, January 30, 2024
Mail delivery company UPS has announced further layoffs.
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The company announced Tuesday that it would cut 12,000 jobs, or 2.4% of its more than 500,000-person workforce.
The logistics company said it was seeking $1 billion in cost cuts in the fourth quarter, citing weak demand and rising union labor costs.
“2023 has been a unique and challenging year,” CEO Carol Tomé said in a statement. “Through it all, we remained focused on controlling what we can control, sticking to our strategy and strengthening our foundation for future growth.”
The new job cuts come after UPS lost business last year as customers worried about possible strikes as employees transferred packages to competing carriers.
However, UPS claimed that while it had expected to regain most of its customers, it only regained nearly 60% of the customers it lost.
Additionally, a UPS spokesperson said the 12,000 jobs being lost will span all divisions within the company, with 75% of the layoffs occurring in the first half of this year.
UPS stock fell more than 8% in Tuesday trading.
The company also reported fourth-quarter 2023 revenue of $24.92 billion, compared to financial experts’ expectations of $25.43 billion.
Additionally, UPS agreed to a $30 billion contract with the Teamsters union in July that increases the average hourly wage for full-time workers to $49 and part-time workers to $21.
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