In a significant strategic shift, global logistics leader UPS has unveiled plans to reduce its operational workforce by up to 30,000 positions this year. This move is part of a broader effort to accelerate a corporate turnaround focused on enhancing profitability and operational efficiency.
The decision builds upon a series of cost-cutting measures implemented last year, which included thousands of job eliminations and the closure of numerous facilities. Company leadership stated that these latest reductions are expected to be achieved primarily through natural attrition and voluntary separation programs offered to employees.
A central component of the company’s new strategy involves a deliberate pivot away from low-margin delivery services. This includes scaling back a substantial volume of shipments for major e-commerce clients, business described internally as detrimental to financial performance. The shift is aimed at prioritizing more profitable shipping segments.
Financially, the corporation reported stronger-than-anticipated results for the critical year-end quarter and provided an annual revenue forecast that exceeded market expectations. Executives project revenue for the current year to approach $90 billion, surpassing earlier analyst estimates.
The restructuring follows a challenging period marked by shifting international trade regulations and the aftermath of a fleet modernization initiative. The company recently recorded a significant one-time charge related to the retirement of an older aircraft model.
This workforce announcement underscores the intense pressures and competitive dynamics within the global delivery and logistics sector, as major firms recalibrate their operations in response to evolving market demands and economic conditions.