To address a significant decline in revenue, UPS has recently decided to fire 12,000 employees, aiming to reduce labor expenses.
The company's move is considered a solution to the challenging financial circumstances.
By reducing its workforce, UPS hopes to solve the impact of the revenue drop effectively, working towards a more sustainable future.
In recent days, UPS has experienced the largest layoff with 12,000 workers being laid off to cope with a decline in revenue.
After completing the layoff, the remaining employees were forced to follow a new work policy of being in the office 5 days a week compared to the previous 3 days a week.
For affected employees, the company will provide severance packages and severance support.
According to the report, UPS's quarterly profits fell 31.8% after a sharp decline in e-commerce demand and high-increased expenses following the signing of a new contract with the Teamsters Union company.
Carol Tomé, UPS CEO, has announced that the company will undergo significant layoffs, impacting approximately 14% of its workforce, which includes both full- and part-time managers out of a total of 85,000.
The move is expected to result in substantial cost savings of up to $1 billion for UPS.
Carol Tomé amitted UPS has had a year full of difficulties and challenges.
As of December 31, UPS achieved revenue of $24.9 billion, lower than the initial forecast of $25.4 billion and a loss of more than 7.8% over the same period last year.
The company's stock also fell 32% year-over-year after an adjustment to $2.47 per share.
According to UPS, the company reported a revenue of $91 billion for the full 2023 fiscal year, representing a decline of 9.3% compared to the previous year, 2022.
For 2024, UPS expects revenue to be between $92 billion and $94.5 billion, a significant drop from the average of $95.7 billion.
In addition, air transport was also sharply cut after demand for air transport showed signs of clearly decreasing, especially from China.
