Shipping giant UPS will lay off 12,000 workers as a cost-cutting measure to start off the year.
The layoff announcement came on Tuesday morning during an earnings conference call.
UPS says that they will cut 12,000 jobs, resulting in approximately $1 billion worth of savings.
The layoffs are expected to be permanent, and they will mainly impact workers in management and contract positions.
Most of the layoffs will happen during the first half of 2024, the company says.
UPS currently employs about 495,000 workers.
“2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth,” said Carol Tomé, UPS CEO.
UPS reported a 7.8% decrease in revenue in the fourth quarter of 2023 from the fourth quarter of 2022.
Also during the call, UPS leadership suggested that the Coyote truck load brokerage business could be put up for sale.
Last summer, UPS and the teamsters reached a preliminary labor deal to prevent a strike that increased wages for union workers and transitioned some part-time workers to full-time. Teamsters General President Sean M. O’Brien called the deal “the most lucrative agreement the Teamsters have ever negotiated at UPS.”