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.
UPS fired 12,000 workers to solve the decline in revenue
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.
UPS revenue dropped greatly, leading to the layoffs of 12,000 workers.
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.
UPS has had a difficult year
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.
