UPS recently announced the shipping giant would be laying off workers in 2024.
The company displayed shortcomings in 2023, not to mention a new contract for UPS union workers was tentatively agreed upon to avoid a strike.
UPS layoffs:Nearly 12,000 employees across the globe to receive job cuts to ‘align resources for 2024’
Here’s what you need to know about UPS layoffs:
Is UPS going to lay off employees in 2024?
Yes. UPS said it will lay off 12,000 employees.
The company’s effort to “right-size” global staffing will take place over the next several months, with 75% of reductions occurring in the first half of 2024.
All affected employees will receive severance packages and outplacement assistance.
Why is UPS cutting 12,000 jobs?
UPS Director of Financial and Strategy Communications Brian Hughes confirmed to USA Today that the company lost more than $9 billion in revenue year over year in 2023.
He noted the reduction is less than 3% of the UPS workforce and does not impact union-represented roles.
UPS strike:Full-time drivers will earn $170,000 a year, on average, in new contract, CEO says
Will there be UPS layoffs in Indiana?
The 3,800 UPS drivers and package handlers in central Indiana who are represented by the Teamsters Union are safe from the global layoffs, according to IndyStar. Teamsters Local 135 covers UPS employees in Indianapolis, Plainfield, Muncie, Centerville, Versailles, Bloomington, Marion, Anderson and Columbus.
Union represented employees are not a part of Tuesday’s layoff announcement, said UPS spokesperson Jim Mayer.
Hughes would not say which jobs would be terminated, according to USA Today.
How many UPS workers are in the US?
According to a UPS fact sheet, there are more than 500,000 employees worldwide with Teamsters representing about 300,000 UPS employees in the US. Approximately 70% of UPS employees in the US are represented by Teamsters.
What is the average salary of a UPS driver?
On Aug. 8 during an earnings call, UPS CEO Carol Tomé said full-time UPS drivers would earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement.
UPS jobs:6-digit salary has Hoosiers asking what brown can do for them
Why do UPS drivers make so much?
The Teamsters authorized a strike by UPS employees if a new contract agreement couldn’t be reached.
UPS reports Q4 profit amid layoff announcement
UPS reported nearly $2.5 billion in profit for the fourth quarter, according to USA Today.
However, the fourth-quarter 2023 consolidated revenues of $24.9 billion were a 7.8% decrease from fourth quarter revnue numbers in 2022.
IndyStar reporter Binghui Huang contributed to this report. Chris Sims is a digital content producer for Midwest Connect Gannett. Follow him on Twitter: @ChrisFSims.
Credit: Source link
