UPS layoffs: What we know so far

TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets close for trading Tuesday, January 30.

Full Video Transcript Below:

J.D. DURKIN: I’m J.D. Durkin, reporting from the New York Stock Exchange. Stocks were down to close out today’s session. The Dow closed lower, the Nasdaq closed down, and the S&P closed in negative territory.

Investors are looking ahead to Wednesday’s interest rate decision as the Federal Reserve’s two-day policy meeting gets underway. Wall Street will also be closely monitoring Fed Chairman Jerome Powell’s comments for any signs of rate cuts when he takes the stage in Washington.

In other news, after posting a disappointing fourth-quarter earnings report, UPS said it will be laying off 12,000 employees. The layoffs come as the company announced efforts to save $1 billion in costs.

UPS reported a decline in shipping volume, both domestically and internationally, in its Q4 report. Of the troubling numbers, CEO Carol Tomé said, “2023 was a unique, and quite frankly, difficult and disappointing year. We experienced declines in volume, revenue, and operating profits in all three of our business segments.”

UPS flourished during the pandemic as online orders became the primary mode of shopping around the globe. In 2022, the company reported sales of over $100 billion for the first time in its then 115-year history. However, in 2023, revenue fell by more than 9 percent.

On its earnings call, Tomé also said that employees would be asked to return to the office five days a week this year. UPS has roughly 500,000 employees worldwide and serves more than countries and territories.

That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.

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