Retrenchment crisis against 12000 employees, the world's largest parcel delivery company increased the tension

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New delhi date. 31 January 2024, Wednesday

UPS Layoffs: Layoffs are ongoing in many major companies around the world. Many giants, including Google, have been laying off employees since the beginning of this year. Now another disappointing news has come out. United Parcel Service, the world's largest parcel delivery company, is going to lay off 12,000 employees. According to the information received, the company may soon take several decisions for truck freight brokerage business Coyote.

For this reason the decision was taken

On the layoffs, Chief Executive Carol Tom said, 2023 has been a very difficult and disappointing year for the company and the company was investing in artificial intelligence. Along with this, the company was also calling the staff to the office five days a week. However, the decision to cut these jobs is now expected to cut costs by around $1 billion (£790 million).

Rising labor cost pressures

A report also stated that the new contract with the Teamsters union was also causing its labor costs to continue to rise. Apart from this, the company's average order is also decreasing. It is also being said that the company's operating margin may be the lowest in the first quarter. Because of the labor problem, companies like FedEx have taken over 60 percent of UPS's business. However, to some extent the company has managed to regain it.

Shares were also declining

The company's revenue was estimated to be lower than expected. UPS shares subsequently fell by a whopping 6.3 percent. The company has taken this decision after a continuous decline in volume, revenue and operating profit.