UPS Announces 12,000 Job Cuts Due To Drop In Package Volume

 The United Parcel Service on Tuesday announced 12,000 job cuts after reporting a decline in the volume of packages being shipped, coming months after the company came to an agreement with a top union to pay drivers higher wages.

"In 2023, dynamic external and economic conditions led to lower volume and a more than $9 billion decline in revenue year over year," UPS Director of Financial and Strategy Communications Brian Hughes told USA Today, confirming the figure.

The job cuts will save the firm about $1 billion, the company's CEO, Carole Tome, told reporters on an earnings call.

In July, UPS agreed to a contract with the Teamsters worth about $30 billion to up full-time workers' pay to $49 per hour and $21 per hour for part-time employees.

UPS expects average daily volume to be weak in the first half of the year before recovering in the latter half.

UPS reported quarterly revenue of $24.9 billion, which is down from $27 billion year-over-year.

Amazon accounted for 11.8 percent of UPS revenue last year. 

https://www.theepochtimes.com/article/ups-announces-12000-job-cuts-due-to-drop-in-package-volume-5576667?utm_source=rtnewsnoe&src_src=rtnewsnoe&utm_campaign=rtbreaking-2024-01-30-1&src_cmp=rtbreaking-2024-01-30-1&utm_medium=email&est=%2FmKQKq2LQQbVcwbXoG%2F84OjYtclB9z3BbDBtozfQLLr06t9rBjn3azBwTcOTVV%2Bmf%2B4%3D