2024-01-30 09:13:31 ET
United Parcel Service Inc (NYSE: UPS) says it will lower its headcount by more than 2.0%. Shares of the shipping company are trading sharply in the red at writing.
The company based out of Atlanta, Georgia will lay off about 12,000 of its employees in total.
Carol Tome – the chief executive of United Parcel Service expects the move to deliver some $1.0 billion in savings.
The news arrives months after UPS reached a deal with Teamsters – a labour union that represents more than half of its employees. Note that the New York listed firm had hired 100,000 seasonal workers in September to prepare for the holiday demand.
UPS stock is still up about 10% versus its low in late October.
Also on Tuesday, United Parcel Service cited a decline in shipping volume as it reported weaker-than-expected revenue for its fourth financial quarter.
The multinational now forecast up to $94.5 billion in revenue and operating margin (adjusted0 at about 10.3% for its fiscal 2024. According to CEO Carol Tome:
2023 was a unique, difficult and disappointing year. We experienced declines in volume, revenue, and operating profits in all three of our business segments.”
This is a developing story. Check back in a few minutes for more updates!
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