4 months ago
NEW YORK: US parcel delivery giant UPS plans to cut 12,000 jobs worldwide in the face of difficult business conditions, it said on Tuesday, reported dpa news.
The job cuts - around 2.5 per cent of its global workforce of around 500,000 employees - are intended to save US$1 billion, group chief executive Carol Tomé said on a conference call.
The future of truck logistics company Coyote, which UPS only acquired in 2015, is also up in the air. A sale is being looked at for the subsidiary, which is suffering from the sharp drop in transport prices following a coronavirus boom.
Last year, UPS missed its repeatedly lowered revenue target due to lower shipment volumes while significant wage increases for employees weighed on profits.
Tomé expects only a slight increase in revenue to around US$92 to US$94.5 billion in 2024.
UPS revenue in 2023 fell by 9 per cent to US$91 billion while adjusted operating profit slumped by almost 29 per cent to US$9.9 billion. UPS ultimately earned US$6.7 billion, around 42 per cent less than in the previous year.
The UPS share price in New York slumped on the results, with the news of cost-cutting failing to halt the slide.
High inflation and economic uncertainties weighed on consumer sentiment in 2023 but competitors such as Fedex and DHL fared better. -Bernama
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