United Parcel Service plans to cut about 12,000 jobs this year as the company tries to slash costs in the face of falling package volumes and higher wages linked to a union contract it signed in the summer.
Ms. Tomé said most of the job cuts would happen in the first half of the year and reduce expenses by about $1 billion.
UPS narrowly averted a strike in the summer when the union that represents more than 300,000 of its workers, the International Brotherhood of Teamsters, threatened to walk off the job if a labor agreement that included higher wages wasn’t reached.
A contract settlement was reached shortly after the previous agreement expired, but the uncertainty about a potential walkout hurt the company’s package volumes.
UPS said about 60 percent of the volume it lost during the standoff had returned by the end of December.
Persons:
Carol Tomé, Tomé, wasn’t
Organizations:
Parcel Service, UPS, ” Revenue, International Brotherhood of Teamsters