Atlanta-based United Parcel Service Inc., or UPS is planning to cut 12,000 jobs globally according to Bloomberg. The announcement was made by Chief Executive Officer Carol Tomé during an earnings conference call on Tuesday.
The company plans to eliminate management positions and contractors, saving approximately $1 billion. The shipper lost business during union talks last summer, and the post-pandemic shift back to in-store shopping and inflation have also affected sales. UPS shares dropped about 7% after the announcement.
The company is focusing on boosting efficiency and shifting to higher-profit deliveries such as medical supplies. UPS’s 2024 outlook expects revenue to range from $92 billion to $94.5 billion. Despite the job cuts, experts believe that the impact on Georgia’s economy will be minimal.
