WASHINGTON (TND) — UPS announced Tuesday that it will cut 12,000 jobs to look at strategic options for its truckload brokerage business, Coyote.
CEO Carol Tome said during a conference call that by reducing the company's headcount, UPS will save $1 billion, according to The Associated Press.
"2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth," Tome said in a news release.
She also announced that this year UPS is returning to a policy of having its employees back in the office five days a week.
United Parcel Service Inc. anticipates 2024 revenue from approximately $92 billion to $94.5 billion.
UPS also posted fourth-quarter revenue of $24.92 billion, below analysts' estimates of $25.31 billion and a decline of 7.8% from the prior year.
Earnings for the quarter ended in December slid by more than half to $1.61 billion, or $1.87 per share, from $3.45 billion, or $3.96 per share. On an adjusted basis, quarterly earnings per share totaled $2.47, a penny above the average estimate, according to FactSet.
The company's board approved an increase of 1 cent in its quarterly dividend to $1.63 per share, payable March 8 to shareholders of record Feb. 20.
Shares of UPS dropped nearly 6% in premarket trading.
Last year union members at UPS voted to approve a tentative contract agreement, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide.
Wayfair and Sports Illustrated also announced they were cutting employees in the first month of 2024.
Niraj Shah, the Wayfair CEO, described it as a "workforce realignment plan" that is "expected to deliver annualized cost savings of more than $280 million."
The layoffs impact approximately 1,650 employees.
Sports Illustrated notified employees that The Arena Group was planning to lay off a "significant number, possibly all, of the Guild-represented workers at SI," according to a statement from the Sports Illustrated Union.
An email to employees stated that Authentic Brands Group has revoked its marketing license.
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Editor's note: The Associated Press contributed to this report.
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