United Parcel Service Inc., commonly known as UPS, has recently announced their plan to lay off 12,000 members of their workforce. This layoff will affect around 14% of their current staff members, made up of 85,000 full-time and part-time managers. The CEO of UPS, Carol Tome, stated in a recent earnings conference call that the goal of this job reduction is to save an estimated $1 billion in this year alone, with additional savings anticipated in the years to come.
In addition to this, the company has made plans to convert to a five-day office working week by 2024. Tome remarked on the economic challenges of the previous year, expressing that despite these hurdles the company has remained committed to managing its controllable factors, maintaining strategic focus, and bolstering its foundation for future growth.
In terms of financial performance, UPS announced a profit of $1.61 billion, or $1.87 per share, during the fourth quarter. This signifies a decrease from the $3.45 billion, or $3.96 per share, observed a year prior. When exceptional items are excluded, the firm's earnings were $2.47 per share, indicating a 31.8% decrease compared to the same period the previous year.
Quarterly revenue also saw a decline, going down to $24.92 billion from the previous year's $27.03 billion. Furthermore, UPS projected a rather less optimistic sales outlook for this year, expecting global revenue to be within the range of $92 billion and $94.5 billion — comparatively less than the $91 billion reported for the previous year.
