UPS announces 12,000 layoffs due to drop in shipments

The delivery company UPS announced that it will lay off 12,000 workers after experiencing a significant drop in business volume in 2023. CEO Carol Tomé made the announcement. She claims the company needs to reduce labor costs by about $1 billion. Business is down 7.4% domestically and 8.3% internationally.

For Tomé, "2023 was a unique and difficult year. We have experienced declines in volume, revenue and operating profits in our three business segments," according to a press release sent by the company. Tomé claimed that "Through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth."

Drop in the stock markets

The final results disappointed shareholders. The company's share value dropped 7% after going public. The company reported that its consolidated revenue amounted to $24.9 billion, 7.8% less than in the fourth quarter of 2022. The consolidated operating profit was $2.5 billion, down 22.5% from the fourth quarter of 2022, and down 27.1% on an adjusted basis. Diluted earnings per share were $1.87 for the quarter. Adjusted diluted earnings per share, at $2.47, were 31.8% lower than the same period in 2022.