United Parcel Service (NYSE:UPS) layoffs are coming for the delivery company’s employees in 2024 after the company reported lackluster earnings on Tuesday.
The United Parcel Service layoffs will result in the company cutting 12,000 jobs after it saw package volume decrease during its previous quarter. That includes both 7.4% domestic and 8.3% international shipping declines.
The UPS layoffs are part of the company’s effort to adjust its resources for a better 2024. The job cuts will also help it reduce spending and save it $1 billion in operating costs. other changes include the company asking its employees to return to the office five days a week.
UPS CEO Carol Tomé said the following about the layoffs in an earnings call, as reported by WSB-TV Atlanta:
“We are going to fit our organization to our strategy and align our resources against what’s wildly important. 2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”
Earnings Affect United Parcel Service Layoffs
The company’s earnings report saw it bring in adjusted earnings per share of $2.47 and revenue of $24.92 billion. That failed to impress investors compared to Wall Street’s estimates of $2.46 per share and revenue of $25.43 billion.
UPS stock is down 8.3% on Tuesday morning after revealing its earnings and layoff news.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
