UPS has announced plans to cut 12,000 jobs, following a disappointing revenue outlook for the year. This news comes just five months after UPS reached a deal with the Teamsters union, which included the creation of thousands of full-time positions and pay raises for union workers. The job cuts, primarily affecting management and contractors, are part of a strategy to achieve $1 billion in cost savings.
Additionally, UPS is considering the sale of its Coyote truck load brokerage business, acquired in 2015 for $1.8 billion. The decision reflects the company’s effort to realign resources with its core strategies.
CEO Carol Tome confirmed the workforce reduction on a recent conference call, also announcing a mandatory return to the office for employees. UPS’s revenue forecast for 2024 falls below Wall Street expectations, with shares dropping nearly 8% following the announcement. The company’s fourth-quarter profits also saw a significant decline, highlighting the challenges facing the global shipping giant.
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