Because of these layoffs, close to 1100 employees would be affected and they are going to be offered a voluntary separation package as part of the work force reduction. And the remaining 700 cuts would be in the form of attrition and layoffs. The company is based primarily in the US and the small package segment, which handles shipments of up to 150 pounds by ground and air, represents roughly 60 percent of UPS’ annual revenue.
In all UPS has around 408,000 employees worldwide, out of which 340,000 of which are located in the U.S. Besides the layoffs, the company hopes to do well, as it has forecasted profit in the fourth-quarter which is courtesy the cost cuts and also due to improvement in operations.
UPS said it now expects to post earnings of 73 cents to 75 cents per share for the October to December quarter. UPS had previously predicted earnings of 58 to 65 cents per share. UPS will report fourth-quarter earnings on Feb. 2.
The company is repositioning itself for a gradual economic recovery by reducing its U.S. regions from five to three and its district offices from 46 to 20, spokesman Norman Black said. Improved technology is allowing UPS to manage larger areas with fewer people to oversee functions, Black said. The downsizing “will have no impact on drivers, customer service people or package sorters,” he said. “None of those positions will be affected.”
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