UPS announces 12,000 job cuts, says package volume slipped last quarter

UPS fell in need of Wall Street income estimates Tuesday, reporting drops in transport volume, each internationally and domestically, in its fourth-quarter earnings report. The firm additionally introduced 12,000 layoffs as a part of an effort to align assets in 2024.

The workforce reductions will save the corporate about $1 billion in prices, CEO Carol Tomé mentioned on an organization earnings name.

Shares of the package large dipped practically 6% in premarket buying and selling.

Here’s how the corporate carried out in comparison with Wall Street estimates:

• Adjusted earnings: $2.47 vs. $2.46 per share anticipated, in response to LSEG, previously referred to as Refinitiv
• Revenue: $24.92 billion vs. $25.43 billion anticipated

For the last three months of 2023, UPS reported web earnings of $1.61 billion, or $1.87 per share, in contrast with $3.45 billion, or $3.96 per share, a yr earlier. Adjusting for one-time gadgets associated to pensions and intangible belongings, UPS earned $2.47 per share.

Revenue declined 7.8% to $24.9 billion from $27 billion last yr.

The firm reported a 7.4% drop in common every day volume domestically and an 8.3% lower internationally. UPS mentioned the worldwide lower was primarily on account of “softness in Europe.”

“2023 was a novel and troublesome yr and thru all of it we remained centered on controlling what we might management, stayed on technique and strengthened our basis for future development,” Tomé mentioned in an announcement.

Though the earnings report didn’t straight point out any monetary impacts from negotiations with Teamsters in August over labor contracts, Tomé cited the negotiations and the macroeconomic atmosphere extra broadly as contributing to the “disappointing” yr.

Looking forward, UPS’s 2024 outlook expects income to vary from $92 billion to $94.5 billion, with an adjusted working margin of about 10% to 10.6%.

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