UPS announced Tuesday that it plans to cut 12,000 jobs after its revenue forecast missed analysts' estimates.
UPS said in a statement to FOX Business that its right-sizing its global workforce after having lower volume and seeing a more than $9 billion decline in revenue year over year. The company blamed these issues on the "dynamic external and economic conditions" in 2023.
UPS Chief Executive Carol Tomé echoed this in the company's earnings report, saying that 2023 was "a unique and difficult year."
THE BIGGEST DELIVERY BUSINESS IN THE U.S. IS NO LONGER UPS OR FEDEX
Despite the challenges, Tomé said the company "remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth."
UPS HIRING OVER 100,000 HOLIDAY WORKERS
Overall, the layoffs will impact less than 3% of its workforce and do not impact union-represented roles, according to UPS.
The company says it also continues to "align staffing in our operations to the needs of our business" and will provide support to all affected employees, including severance packages and outplacement assistance.
For the fourth quarter, the company reported revenue of $24.9 billion, down from $27 billion in the same period last year. It was also below analysts' estimates of $25.43 billion.
In the U.S., revenue decreased 7.3% due to a 7.4% decrease in average daily volume, according to the company.
Aside from the layoffs, the package shipping powerhouse is simultaneously exploring options for Coyote, the truckload freight brokerage it acquired in 2015, according to Reuters.
UPS is the latest company to announce that it plans to trim its workforce within the first month of the new year.
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Amazon, Google, iRobot, Citigroup, the Los Angeles Times and Sports Illustrated recently announced that they are cutting jobs.
