In 2023, dynamic external and economic conditions led to lower volume and a more than $9 billion decline in revenue year over year.UPS Director of Financial and Strategy Communications Brian Hughes said after confirming layoffs for 2024.
Why It Matters: As UPS delivers packages for retailers, “UPS’s financial results often serve as a barometer for the U.S. and the global economy” (Wall Street Journal). 2024 revenue is still predicted to be below analyst’s forecasts and profits predicted to be lower than year-earlier.
What To Know: UPS announced they will cut around 12,000 jobs in 2024 and, beginning March 4th, staff must work from offices for five days a week. UPS said that management staff and contract workers are the primary targets for layoffs.
UPS has about 85,000 management employees but the majority of workers, 495,000, are unionized transportation and package handling workers. Union workers will not be affected by the layoffs.
Why? Chief Executive Carol Tomé said this will save the company around $1 billion after UPS’ revenue and average number of daily handled packages fell in 2023. According to the Wall Street Journal, UPS is also, “grappling with higher costs after agreeing to wage increases in a union contract for its drivers and warehouse workers” and “…contending with increased competition from smaller carriers.”
Worth Noting: Google laid off hundreds of employees in January, with more layoffs to come. Amazon will also be laying off hundreds of employees in their film and television studio and Twich platform. Citigroup, EBay, Microsoft, Macy’s, and many others are joining in.
UPS to Cut 12,000 Jobs and Mandate Return to Offices Five Days a Week (The Wall Street Journal)
Layoffs in 2024: A List of Companies Cutting Jobs This Year (The Wall Street Journal)
by Sarah Pinkerton,