Sun. Jun 23rd, 2024

UPS announced plans to reduce its workforce by 12,000 jobs and provided a revenue outlook for the current year that led to a significant drop in its shares at the market opening.

Additionally, the company suggested that its Coyote truck load brokerage business might be up for sale.

In September, the Teamsters ratified a tentative contract agreement with UPS, finalizing contentious labor negotiations that had the potential to disrupt package deliveries nationwide.

During a conference call on Tuesday morning, CEO Carol Tomé stated that UPS aims to achieve $1 billion in cost savings by reducing its headcount.

UPS also disclosed that its board approved a one-cent increase in its quarterly dividend for shareholders of record as of February 20.

Tomé emphasized, “We are aligning our organization with our strategy and focusing our resources on what’s critically important.”

UPS is mandating employees to return to the office five days a week this year, according to Tomé.

The company anticipates 2024 revenue to range from approximately $92 billion to $94.5 billion, falling short of Wall Street’s expectations for a figure exceeding $95.5 billion.

Shares of UPS declined by nearly 9% on Tuesday.

In the fourth quarter, revenue fell 7.8% to $24.92 billion, slightly below Wall Street forecasts of $25.31 billion. Profits for the quarter ended in December dropped by more than half to $1.61 billion, or $1.87 per share, from $3.45 billion, or $3.96 per share. Adjusted quarterly earnings per share totaled $2.47, one cent above the average estimate, according to FactSet.

By Bhaskar D

Hi there! I'm Bhaskar Das, a seasoned professional with over 18 years of experience in the corporate sector, spanning both Indian and US markets. I'm dedicated to staying updated with the latest news and trends, ensuring that my insights and perspectives remain relevant and valuable. Join me on my journey as I share my experiences and knowledge across my blogs.

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