UPS to Cut 12,000 Jobs Amid Slowing Delivery Demand and Labor Uncertainty
• UPS announced it will cut 12,000 jobs, mostly managers and contractors, to save $1 billion in costs • The job cuts come as UPS issued a disappointing 2023 sales outlook, expecting revenue between $92-$94.5 billion rather than the $95.6 billion forecast • UPS lost business in 2022 as customers shifted shipments to rivals like FedEx due to concerns about a potential Teamsters strike • Though UPS expects to regain most of that lost business, so far it has only won back 60% amid a slowing small package delivery market • The job cuts are part of a bid to cut costs after UPS saw revenue fall over 9% in 2023 from record $100+ billion levels during the online shopping boom of the pandemic