LOUISVILLE, Ky. (WDRB) -- United Parcel Service, Louisville's largest employer, plans to cut 12,000 jobs -- about 3% of its worldwide workforce -- after what its CEO called a "difficult and disappointing" year.
UPS’ revenue, package volume and profits were all down in 2023 as the shipper’s business continues to revert to pre-pandemic norms after a surge in 2020-2021.
"We're going to fit our organization to our strategy and align our resources against what's wildly important," Carol Tomé, CEO of Atlanta-based UPS, told stock analysts on the company’s quarterly earnings call Tuesday.
The jobs to be eliminated come primarily from UPS' management ranks of about 85,000 worldwide, not the roughly 410,000 package handlers, drivers, pilots and other hourly positions, Tomé said on the call.
"The targeted headcount falls really within that group, as well as some contractors that will be leaving," Tomé told analysts, referring to the company’s 85,000 managers.
A UPS spokeswoman confirmed that union-represented hourly jobs are not part of the planned cuts.
In a statement to media, UPS wouldn't specify which positions would be targeted or the locations of those employees, saying the cuts would come from "around the world over the next several months."
"The company will provide support to all affected employees, including severance packages and outplacement assistance," spokeswoman Michelle Polk said.
UPS employs about 25,000 in the greater Louisville area, which is the headquarters of the UPS Airlines division and the location its Worldport global air cargo hub at Louisville Muhammad Ali International Airport.
The vast majority of Louisville-area UPSers are package handlers, drivers, dispatchers, mechanics, pilots and other hourly workers. UPS wouldn’t say how many of its Louisville-area employees are management.
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