UPS to Lay Off 12,000 Employees Amid Lower Demand

In July last year, UPS agreed to a contract with the Teamsters union, but no union jobs will be affected by the cuts.

Discover the latest as UPS announces plans to lay off 12,000 employees globally, citing decreased demand and rising expenses. Explore the details and implications of this significant workforce reduction.

Although the Teamsters union and UPS reached a $30 billion contract in July of last year, no union positions will be impacted by the layoffs.

UPS declared that it would lay off 12,000 employees, or 2.4% of its workforce of over 500,000 worldwide.

The massive logistics company announced during its earnings call on Tuesday that it was looking to save $1 billion in costs for the fourth quarter due to lower demand and greater union labor costs.

Less than 3% of UPS’s staff was affected by the job losses, according to a spokesman for the business, and union-represented positions were unaffected. According to the spokesman, the corporation will be affecting jobs globally and across all functions, with 75% of the cutbacks occurring in the first half of the year.

Less than 3% of UPS’s staff was affected by the job losses, according to a spokesman for the business, and union-represented positions were unaffected. According to the spokesman, the corporation will be affecting jobs globally and across all functions, with 75% of the cutbacks occurring in the first half of the year.

The business recorded $24.92 billion in revenue for the fourth quarter of 2023, as opposed to the $25.43 billion that Wall Street experts had predicted.

Tuesday’s trade saw a more than 8% decline in UPS shares.

Conclusion

UPS’s decision to lay off 12,000 employees reflects the challenges posed by shifting market dynamics and rising operational costs. As the company seeks to streamline operations and adapt to changing demand, the impact of these job cuts underscores the need for strategic adjustments in a competitive landscape.