UPS announced plans to cut 12,000 jobs this year due to weak shipping volumes, a plan the shipping giant says will save the company $1 billion.
The company announced at its financial results conference on Tuesday that average daily domestic shipments decreased by 7.4% and domestic shipments decreased by 8.3%.
UPS announced fourth-quarter sales of $24.9 billion, down 7.8% from $27 billion in the same period last year.
Despite declining sales and layoffs, the company also reported returning $7.6 billion to shareholders through dividends and stock buybacks.
The move comes less than six months after the Teamsters union approved a new contract with UPS to avoid a summer strike.
“2023 was a unique and frankly difficult and disappointing year,” UPS CEO Carol Tome said Tuesday. I experienced that,” he said.
Tomé also announced that UPS will ask employees to return to the office five days a week this year and that the company is considering options to sell Coyote, its “highly cyclical” freight brokerage business. Stated.
The parcel delivery company’s stock fell in early trading following the announcement.
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