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UPS to Cut 12,000 Jobs as Delivery Business Slows; Stock drops 8% this morning
WSJ ^ | 30 January 2024 | Esther Fung

Posted on 01/30/2024 7:18:30 AM PST by NautiNurse

United Parcel Service said Tuesday that it plans to cut about 12,000 jobs this year, a move that the package-delivery giant said would result in $1 billion in savings.

Most of the cuts will be to full-time and part-time management positions and contract workers, and executives said they don’t expect these jobs to return when parcel volumes return.

UPS has around 85,000 workers in management.

[Snip]

The job cuts were unveiled after the company said its revenue declined in the last quarter of 2023 as volumes in both its domestic and international businesses dropped.

(Excerpt) Read more at wsj.com ...


TOPICS: Business/Economy; Extended News; Front Page News; News/Current Events; Politics/Elections
KEYWORDS: bigbrown; economy; freight; layoffs; shipping; stockmarket; ups; upsstock
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To: CIB-173RDABN

Right, and the money/time saved, and the potential problems avoided by not traveling to and into stores makes delivery a great deal. Shoes and groceries are about the only thing I go to a store for these days.


41 posted on 01/30/2024 7:55:15 AM PST by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
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To: Bon of Babble

FedEX Ground is totally different from FedEX Air. It’s run more like the Amazon model.

Of course UPS Just got a big contract with big raises last fall. They drivers average around $100k now.


42 posted on 01/30/2024 7:55:21 AM PST by ImJustAnotherOkie
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To: CIB-173RDABN

Amazon is 100% more convenient for most of us when it comes to shopping - my daughter does a six month delivery of cleaning supplies, toilet paper and paper towels and she said that has made her life a lot easier.

Amazon also has an amazing selection of products to choose from, far more than the local stores, whose shelves seems to be emptier and emptier these days (California so there is a huge shoplifting problem). For me, it is the utter convenience of not having to go out.

I also get deliveries the same day - there is a distribution center near where I live so I suspect that may be the reason. Was out of the coffee I like and so was Target - ordered in the morning from Amazon and had it in the afternoon for this morning.

My sister also reports a lot of same day deliveries in her area - but then she too lives near a distribution center.


43 posted on 01/30/2024 7:56:40 AM PST by Bon of Babble (You Say You Want a Revolution?)
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To: Vigilanteman

Back in school (45 years ago) they used pallets because they were used to crate durable goods, like drill presses and “shop” equipment. These days those things don’t mean much.

When I was young, I had friend who worked for a local company that made corrugated boxes. He would say he knew when there was going to be a “promotion” for a local company because they were printing lots of boxes.

Those things are antiquated these days.


44 posted on 01/30/2024 7:57:06 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
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To: PUGACHEV

We see the same here:

“My observation is the opposite: I see Amazon and UPS all the time, but rarely see FedEX.”

Fed Ex has an expensive delivery before or shortly after 8:30 am.

Then, they have afternoon deliveries with drivers, who often can’t read the address labels correctly.

UPS uses the postal service delivery for Costco and Amazon? with our mailbox getting the delivery.


45 posted on 01/30/2024 7:57:23 AM PST by Grampa Dave (Trust no one, who is not a proven and valued/trusty one or a family member or a long time friend! )
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To: escapefromboston

I’ve had no problems with Amazon and we use almost daily. Deliveries usually happen a day earlier than they estimate.


46 posted on 01/30/2024 7:57:47 AM PST by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
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To: Bobalu

My local post office as as van for that stuff. You will see them scooting around town like the dozens of Amazon trucks.

My, how the world has changed.


47 posted on 01/30/2024 7:59:43 AM PST by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
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To: LeonardFMason

the latter. the drivers are essential for revenues and tightening belt by getting rid of non-essential personnel goes right to bottom line which is what counts on earnings news.


48 posted on 01/30/2024 8:00:13 AM PST by avital2 ("n)
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To: Bobalu

UPS/USPS handoffs seem to vary by location. Out here in SE Arizona, there was a time when UPS began handing off our Amazon pkgs to the local PO. The local carrier would leave a pkg slip and we’d have to go to the PO to retrieve the pkg. It’s a small facility, and you see could thru to back room where their shelves were overflowing with pkgs waiting to be retrieved. But about a year ago UPS stopped using the local PO to deliver their pkgs. We have excellent UPS service out here in rural whiteopia. The local postal employees are outstanding too.


49 posted on 01/30/2024 8:00:35 AM PST by Blurb2350 (posted from my 1500-watt blow dryer)
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To: Bon of Babble

my daughter does a six month delivery of cleaning supplies,

We do this with many items that have no expiration date.


50 posted on 01/30/2024 8:01:51 AM PST by CIB-173RDABN (I am not an expert in anything, and my opinion is just that, an opinion. I may be wrong.)
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To: Bon of Babble

If I find out something is being sent UPS, I assume it will take twice the normal travel time. Last time I tried to ship, UPS was going to cost me twice as much and take longer to deliver.

I’m guessing THAT might be the source of their issues...driven by unions.


51 posted on 01/30/2024 8:02:34 AM PST by Mr Rogers (We're a nation of feelings, not thoughts.)
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To: Vermont Lt

A lot of the Fed Ex trucks are independent contractors with a Fed Ex franchise. So, it is really dependent on where you are.

This probably explains some bad deliveries by Fed Ex drivers who can’t tell the difference between a single digit address and a double digit address.


52 posted on 01/30/2024 8:03:29 AM PST by Grampa Dave (Trust no one, who is not a proven and valued/trusty one or a family member or a long time friend! )
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To: PghBaldy

I have not seen any news mention of the Baltic Dry Index, a world wide shipping indicator that is claimed to be a leading indicator of economic activity swings.


53 posted on 01/30/2024 8:04:16 AM PST by desertsolitaire ( M)
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To: NautiNurse
I recently paid UPS $65 for a next-day letter envelope delivery.

That is ridiculous. I paid that much with DHL and got packages delivered (to Houston) from Japan in three days.

54 posted on 01/30/2024 8:05:19 AM PST by plsvn
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To: NautiNurse

Biden protected Teamsters are not affected.

However......

“If You’re not undermanned, you’re overstaffed” Sam Walton


55 posted on 01/30/2024 8:08:03 AM PST by bert ( (KE. NP. +12) Hamascide is required in totality)
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To: bray

I sure do.


56 posted on 01/30/2024 8:09:59 AM PST by EvilCapitalist (Pets are no substitute for children)
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To: Vermont Lt

The delivery people are not involved. Dead wood managers are being culled. A general white coller layoff gets rid of the alcoholics


57 posted on 01/30/2024 8:10:39 AM PST by bert ( (KE. NP. +12) Hamascide is required in totality)
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To: Bon of Babble

“I also get deliveries the same day - there is a distribution center near where I live so I suspect that may be the reason. Was out of the coffee I like and so was Target - ordered in the morning from Amazon and had it in the afternoon for this morning.”

My sister also reports a lot of same day deliveries in her area - but then she too lives near a distribution center.”

We sometimes get same day delivery or overnight delivery for smaller items. We like one of Costco’s coffee bean versions, and my wife failed to notify me that we needed to buy more.

I placed an order to Amazon, and we got overnight delivery for the coffee.


58 posted on 01/30/2024 8:14:29 AM PST by Grampa Dave (Trust no one, who is not a proven and valued/trusty one or a family member or a long time friend! )
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To: Diana in Wisconsin

They aren’t allowed to use the mailbox...that’s for USPS only.


59 posted on 01/30/2024 8:16:36 AM PST by Runner4life
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To: desertsolitaire

I have not seen any news mention of the Baltic Dry Index, a world wide shipping indicator that is claimed to be a leading indicator of economic activity swings.


Interesting ! Thanks very much!


60 posted on 01/30/2024 8:19:45 AM PST by Faith65 (Isaiah 40:31 )
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