UPS to cut 1,800 jobs
UPS to cut 1,800 jobs as part of restructuring
UPS inc, announced Friday that it will cut 1,800 management and administrative jobs across the country in an effort to streamline the company’s domestic management structure. 1,100 employees will be offered a voluntary separation package meanwhile other workers will will receive severance benefits and access to support programs. Scott Davis, UPS Chairman said the layoffs were “difficult, But we believe this will allow us to sharpen our focus on profitable growth while being even more nimble in serving our customers.” The company will also reduce its U.S. regions from five to three and its U.S. Districts from 46 to 20 in April. There are no plans to close any operating facilities. UPS said the consolidation of offices will not affect the sales and operations team, including drivers.
The layoff will take effect in April, though stock of the company was trading in the green up 5% by the closing bell. The company also announced that it raised its profit forecast for the fourth-quarter that ended in December, citing improving operations and cost cuts. 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.