The United Parcel Service on Tuesday announced 12,000 job cuts after reporting a decline in the volume of packages being shipped, coming months after the company came to an agreement with a top union to pay drivers higher wages.
"In 2023, dynamic external and economic conditions led to lower volume and a more than $9 billion decline in revenue year over year," UPS Director of Financial and Strategy Communications Brian Hughes told USA Today, confirming the figure.
The job cuts will save the firm about $1 billion, the company's CEO, Carole Tome, told reporters on an earnings call.
In July, UPS agreed to a contract with the Teamsters worth about $30 billion to up full-time workers' pay to $49 per hour and $21 per hour for part-time employees.
UPS expects average daily volume to be weak in the first half of the year before recovering in the latter half.
UPS reported quarterly revenue of $24.9 billion, which is down from $27 billion year-over-year.
Amazon accounted for 11.8 percent of UPS revenue last year.
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