OAN’s James Meyers
8:51 AM – Tuesday, January 30, 2024
The mail delivery company UPS announced another round of job cuts.
The company announced on Tuesday it would be cutting 12,000 jobs, which equates to 2.4% of its more than 500,000 workforce.
According to the logistics company it is seeking $1 billion in cost reductions for the fourth quarter, citing softer demand and higher union labor costs.
“2023 was a unique and difficult year,” CEO Carol Tomé said in a statement. “Through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”
The new round of layoffs comes after UPS lost business last year after customers were fearful of a possible strike by employees shifting shipments to rival carriers.
However, UPS claimed they expected to get most of their customers back, but only earned back close to 60% of their lost customers.
Additionally, the 12,000 jobs lost would be throughout all departments of the company, and 75% of the cuts would come in the first half of the year, according to a UPS spokesperson.
UPS shares were down over 8% in Tuesday trading.
The company also reported fourth quarter 2023 revenues of $24.92 billion compared to the $25.43 billion that financial experts predicted.
Furthermore, UPS agreed in July to a $30 billion contract with the Teamsters union, which increased the average full-time worker’s pay to $49 an hour and $21 an hour for a part-time worker.
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