UPS will lay off 12,000 employees and issued a sales forecast for this year, causing its stock to plummet dramatically.
The corporation also mentioned that its Coyote truckload brokerage business could be sold. The shipping company bought the Chicago-based startup for $1.8 billion in 2015.
In September, the Teamsters voted to ratify a tentative contract agreement with the company, ending acrimonious labour negotiations that threatened to interrupt package deliveries to millions of businesses and households nationwide. The deal includes salary hikes for full-time and part-time union workers, creating 7,500 full-time employees, and filling 22,500 unfilled posts, allowing more part-time workers to advance to full-time status.
UPS To Cut 12,000 Jobs 5 Months After Reaching Union Deal As Revenue Outlook For Year Disappoints
On a conference call Tuesday morning, CEO Carol Tome stated that by decreasing the company’s staff, UPS will save $1 billion. The job cuts are expected to be in management and contract positions, according to the company.
On Tuesday, UPS also said that its board approved a one-cent raise in its quarterly dividend to shareholders of record on February 20.
“We are going to fit our organisation to our strategy and align our resources against what’s wildly important,” he said.
UPS To Cut 12,000 Jobs 5 Months After Reaching Union Deal As Revenue Outlook For Year Disappoints
Tome stated that UPS had ordered staff to return to the office five days a week this year.
United Parcel Service Inc. expects revenue in 2024 to be between $92 billion and $94.5 billion, falling shy of Wall Street projections of more than $95.5 billion.
UPS shares fell more than 8% on Tuesday.
Revenue again fell short in the fourth quarter, dropping 7.8% to $24.92 billion. According to a FactSet analyst survey, that falls just short of Wall Street forecasts of $25.31 billion.
Profits for the December quarter fell more than half, to $1.61 billion, or $1.87 per share, from $3.45 billion, or $3.96 per share. On an adjusted basis, quarterly earnings per share were $2.47, a cent higher than the average estimate, according to FactSet.
“Ups” in business refer to the increase or improvement of something, such as sales, profits, or performance.
When a company experiences rises in its metrics, it often signifies growth and success. Understanding the reasons behind these rises can help businesses capitalize on their strengths and make strategic decisions to maintain or further enhance their positive trajectory.
UPS To Cut 12,000 Jobs 5 Months After Reaching Union Deal As Revenue Outlook For Year Disappoints
Analyzing the factors contributing to the ups can provide valuable insights for future planning and goal setting. It’s essential for businesses to continuously monitor and evaluate their ups to adapt and stay competitive in the market.
SOURCE – (AP)
