Mega layoffs: UPS is laying off 12,000 people

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This amounts to approximately two and a half percent of the global workforce of approximately half a million employees. Coyote, the truck logistics company that UPS acquired in 2015, is also being tested. It is also possible to sell the subsidiary, which experienced a sharp decline in transportation prices after the Corona explosion.

Last year, UPS failed to meet its sales target, which it lowered several times due to low shipping volumes. Additionally, significant wage increases for employees also put pressure on profits. CEO Tomé expects only a slight increase in sales to around $92.0 billion to $94.5 billion in 2024, according to Tuesday’s announcement.

Last year, UPS sales dropped nine percent to $91 billion. Adjusted operating profit fell almost 29 percent to $9.9 billion. As a result, UPS earned $6.7 billion, about 42 percent less than the previous year.

The slight increase in average revenue per package could not offset the decline in shipment volumes. On the one hand, high inflation and economic uncertainty negatively affected consumers’ spending mood. On the other hand, with UPS under threat of a strike, many customers temporarily relied more on competitors like Fedex and DHL. Ultimately, the company reached an agreement with the Teamsters transportation workers union on wage increases. (SDA)

Source :Blick