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UPS Slashes 12,000 Jobs In Cost-Cutting Move, Shares Plunge

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United Parcel Service Inc. (NYSE:UPS) witnessed its most significant drop in shares since April 2023. The company’s latest financial report revealed revenues falling below expectations, coupled with weaker-than-anticipated guidance for the future, leading to a sharp market reaction.

Massive Job Cuts Amid Rising Costs: To mitigate financial pressures, UPS announced the dismissal of 12,000 employees, representing about 14% of its managerial workforce.

According to Reuters, unexpected labor contract-related costs in the second half of 2023 exceeded estimates by approximately $500 million. CEO Carol Tomé expects these job cuts to save the company around $1 billion in 2024.

A Year Marked by Declining Sales and Profits: The last quarter of …

Full story available on Benzinga.com

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