UPS hopes to save nearly $1 billion in cost-saving measures after recently announcing the shipping giant − whose largestlargest sorting and logistics facility is based in Louisville −would be laying off workers in 2024.
A new contract for UPS union workers was tentatively agreed upon to avoid a strike nearly 6 months ago, as well as company shortcomings in 2023 that have caused reason for concern.
UPS layoffs:12,000 jobs to be cut worldwide following poor 2023 performance
Here's what you need to know about UPS layoffs:
Is UPS going to lay off employees in 2024?
Yes. UPS said it will lay off 12,000 employees.
The company's effort to "right-size" global staffing will take place over the next several months, with 75% of reductions occurring in the first half of 2024.
All affected employees will receive severance packages and outplacement assistance.
Why is UPS cutting 12,000 jobs?
UPS Director of Financial and Strategy Communications Brian Hughes confirmed to USA Today that the company lost more than $9 billion in revenue year over year in 2023.
He noted the reduction is less than 3% of the UPS workforce and does not impact union-represented roles.
UPS strike:Full-time drivers will earn $170,000 a year, on average, in new contract, CEO says
Will there be UPS layoffs in Kentucky?
Union represented employees are not a part of Tuesday's layoff announcement, said UPS spokesperson Jim Mayer.
Hughes would not say which jobs would be terminated, according to USA Today.
How many UPS workers are in the US?
According to a UPS fact sheet, there are more than 500,000 employees worldwide with Teamsters representing about 300,000 UPS employees in the US. Approximately 70% of UPS employees in the US are represented by Teamsters.
What is the average salary of a UPS driver?
On Aug. 8 during an earnings call, UPS CEO Carol Tomé said full-time UPS drivers would earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement.
Layoffs 2024:What companies experienced massive layoffs in 2024? Who's making cuts so far
Why do UPS drivers make so much?
The Teamsters authorized a strike by UPS employees if a new contract agreement couldn't be reached.
UPS reports Q4 profit amid layoff announcement
UPS reported nearly $2.5 billion in profit for the fourth quarter, according to USA Today.
However, the fourth-quarter 2023 consolidated revenues of $24.9 billion were a 7.8% decrease from fourth quarter revenue numbers in 2022.
UPS 2024 outlook
According to courier-journal.com, UPS expects to see a $1 billion to $3.5 billion increase from 2023 as demand has returned with the relaunch of guaranteed2nd Day Air AM shipping and delivery for business customers.
As the company sees demand for services making an upswing, UPS is shooting for 2024 revenues in the range between approximately $92.0 and $94.5 billion. However, these numbers would still fall short of the company'shistoric 2022 earnings of $100.3 billion.
UPS plans to detail its new three-year plan for company growth in March.
Courier-Journal reporter Olivia Evans contributed to this story. Chris Sims is a digital content producer for Midwest Connect Gannett. Follow him on Twitter:@ChrisFSims.
