During the company’s quarterly earnings call, UPS announced layoffs that would affect 12,000 employees in its global workforce to cut costs amid falling year-over-year revenue.
2023 Revenue for UPS Declined Year-Over-Year by 9.3%
In the fourth quarter of 2023, the company’s revenue fell 7.8% to $24.9 billion from $27 billion the year before. Based on its quarterly earnings report, UPS earned $91 billion in revenue during 2023, marking a 9.3% decline compared to revenue in 2022.
Speaking on the figures during the company’s quarterly earnings call, UPS CEO Carol Tomé said the following:
“2023 was a unique, and quite candidly, difficult and disappointing year. We experienced declines in volume, revenue and operating profits and all three of our business segments.”
The UPS Layoffs Come Months After Teamsters Struck a New Labor Contract With the Carrier
Notably, the announcement of job cuts comes months after UPS struck a new labor contract with the Teamsters union which, among other key points, got rid of a two-tiered wage system and implemented raises across the entire UPS workforce. As a result of the deal, compensation for some full-time UPS drivers would increase to $170,000 per year in salary and benefits by the contract’s end date.
According to Tomé, the layoffs at UPS will save the company about $1 billion in yearly costs. UPS leadership didn’t elaborate on which positions would be eliminated, though the company said that the layoffs would affect workers around the globe.
According to a fact sheet on the UPS website, the company currently has over 500,000 employees in over 200 countries and territories.