UPS cut workforce by 48,000 to reduce expenses by $3.5 billion

Key Points UPS has reduced its workforce by approximately workers in The logistics company expects to reduce expenses by billion this year A UPS package handler works at one of the company s facilities Automation job cuts and building closures are helping the logistics company reduce its costs Provided by UPS UPS declared on Oct that it had cut its workforce by approximately positions and closed daily operations at leased and owned buildings so far in In a news release about its third-quarter earnings document issued on Oct UPS mentioned an initiative called Fit to Serve reduced the UPS workforce by approximately positions primarily within management The intent was to right-size the business for a more efficient operating model UPS also reduced its operational workforce by approximately positions in its Grid of the Future initiative This includes a driver voluntary separation initiative Chief Financial Officer Brian Dykes stated during the earnings call Related story UPS announces reduction in force with severance building closures The company also closed daily operations at leased and owned buildings in the initiative UPS realized cost savings of approximately billion as of Sept The company expects to achieve billion total year-over-year cost savings in from this initiative according to the release Dykes disclosed automation was deployed at another facilities with seven more buildings scheduled for automation projects in December We are executing the the bulk vital strategic shift in our company s history and the changes we are implementing are designed to deliver long-term value for all stakeholders UPS CEO Carol Tom announced during the company s third quarter earnings call on Oct The logistics company communicated third-quarter earnings of billion with U S domestic revenue of approximately billion The release noted that international revenue was approximately billion Revenue from supply chain solutions reached billion In its earnings comment UPS commented it expects fourth-quarter revenue to be approximately billion Capital expenditure is expected to be billion With board approval dividend payments are expected to be around billion The post UPS cut workforce by to reduce expenses by billion appeared first on Rough Draft Atlanta