Officials at UPS, just four months after reaching a deal for a new contract with its union workers, said this week it will trim 12,000 jobs from the payroll.
The news came as UPS released its revenue outlook that was troubling enough to send the value of its shares down at the opening bell, according to reporting from the Associated Press.
The Teamsters just voted to approve a tentative contract agreement with UPS back in September, putting the final touches on what had been contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide, according to the AP report.
On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company’s headcount UPS will realize $1 billion in cost savings.
UPS also said Tuesday that its board approved an increase of 1 cent in its quarterly dividend to shareholders of record Feb. 20.
“We are going to fit our organization to our strategy and align our resources against what’s wildly important,” Tome said, according to the AP.
Tome said that UPS is ordering employees to return to the office five days a week this year.
United Parcel Service Inc. anticipates 2024 revenue in a range of approximately $92 billion to $94.5 billion, short of Wall Street’s expectations for a figure above $95.5 billion.
Shares of UPS dropped nearly 9% Tuesday.
