UPS (United Parcel Service) plans to cut 12,000 jobs as part of a cost-saving effort, after reporting Q4 earnings that fell short of Wall Street expectations, Associated Press reports.
UPS CEO Carol Tome stated that the job cuts will result in $1 billion in cost savings, mainly affecting management roles and contractors. The company is also considering selling its Coyote truck load brokerage business, which it acquired in 2015 for $1.8 billion.
The company anticipates 2024 revenue in the range of $92 billion to $94.5 billion, falling short of Wall Street expectations. In the fourth quarter, UPS reported a 7.8% decline in revenue to $24.92 billion, and profits for the quarter dropped by more than half to $1.61 billion. Shares of UPS fell nearly 8% in response to the news.