US parcel service UPS cuts 12,000 jobs Intel disappoints the stock market with business forecasts – shares fall 11 percent

The American parcel service UPS wants to cut 12,000 jobs due to difficult business. The job cuts are intended to save a billion dollars, CEO Carol Tomé said during a conference call.

That is about two and a half percent of the global workforce, which has about half a million employees. In addition, the truck logistics company Coyote, which UPS only bought in 2015, is being tested. It is also possible to sell the subsidiary, which is suffering from the sharp drop in transport prices after the Corona boom.

Last year, UPS also missed its sales target, which was reduced several times due to lower shipping volumes. In addition, significant wage increases for employees weighed on profits. CEO Tomé expects only a slight increase in revenue to about $92.0 billion to $94.5 billion in 2024, according to Tuesday’s announcement.

Last year, UPS’s revenue fell by more than nine percent to $91 billion. Adjusted operating profit fell nearly 29 percent to $9.9 billion. The bottom line is that UPS earned $6.7 billion, down about 42 percent from the year before.

A slight increase in average turnover per package could not compensate for the decline in shipping volumes. On the one hand, high inflation and economic uncertainty weighed on consumer spending mood. On the other hand, many customers temporarily became more dependent on competitors such as Fedex and DHL as UPS was threatened with a strike. Ultimately, the company reached an agreement with the Teamsters transportation union on salary increases. (saw/sda/awp/dpa)