Latest news with #NetworkReconfigurationandEfficiencyReimagined
Yahoo
30-04-2025
- Business
- Yahoo
UPS to cut thousands of jobs and 164 buildings due to tariffs. Are Ohio locations affected?
President Donald Trump's plan to increase tariffs continues to impact U.S. and global trade and commerce. United Parcel Service, also known as UPS, is expected to cut around 20,000 jobs and close 164 buildings due to 'new or increased tariffs,' USA TODAY reports. Will Ohio locations be affected? Here's what to know. The layoffs were announced on Apr. 29 in UPS' first quarter earnings report. In 2024, UPS employed approximately 490,000 people globally, including around 330,000 jobs represented by Teamsters in the United States. Cutting 20,000 jobs represents about 4% of UPS' workforce. By the end of June, UPS will close 73 buildings, with a total of 164 buildings expected to be closed by the end of the year. Currently, UPS has not specified which locations and which types of buildings will close. The job cuts and building closures are expected to save UPS $3.5 billion in 2025, per the earnings report. UPS' consolidation and cost-saving initiative, "Network Reconfiguration and Efficiency Reimagined," is expected to end in 2027, according to the company. UPS has over 40 hubs, customer centers, airport facilities and railroad operations in Ohio, including: Athens: 1 Kenny Dr. Austinburg: 1553 Route 45 S Boardman: 95 Karago Ave. Brilliant: 500 Labelle Ave. Canton: 4850 Navarre Ave. Celina: 1851 Industrial Dr. Chillicothe: 1536 N Bridge St. Cincinnati: 1276 W 8th St. Cincinnati: 640 W 3rd St. Clairsville: 44191 Lafferty Rd, St. Cleveland: 4300 E 68th St. Cleveland: 331 Bishop Road Cleveland: 5203 W Hangar Road Columbus: 5101 Trabue Road Columbus: 2162 Reserve Road Dayton: 1308 Brandt Pike Defiance: 820 Carpenter Road Elyria: 246 Warden Ave. Findlay: 1301 Commerce Pkwy. Fremont: 727 Hagerty Road Girard: 800 Trumbull Ave. Hamilton: 1951 Logan Ave. Hebron, Kentucky: 1260 Aviation Blvd. (Near Cincinnati/Northern Kentucky International Airport) Lancaster: 511 S High St. Lima: 801 Industrial Ave. Mansfield: 875 W Longview Ave. Marietta: 105 Industry Road Marion: 1476 Likens Road Maumee: 1550 Holland Road Middleburg Heights: 17940 Englewood Dr. Milan: 12614 Rt. 250 Newark: 1099 E Main St. New Philadelphia: 241 8th St. SW North Baltimore: 16615 Deshler Road Obetz: 2450 Rathmell Road Piqua: 8460 Industry Park Dr. Portsmouth: 21 Gingersnap Road Sharonville: 11141 Canal Road Springfield: 500 W Leffel Lane Toledo: 2101 Hill Ave. Wadsworth: 478 Corporate Pkwy. West Carrollton: 225 S Alex Road Wooster: 3250 Old Airport Road Zanesville: 1507 Augusta Ave. UPS cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, which accounted for 11.8% of its overall revenue in 2024, CNBC reported. 'We are reducing the amount of volume we deliver for Amazon by more than 50% by June 2026," Brian Dykes, UPS' chief financial officer, said in a statement to USA TODAY. "Associated with this volume reduction, we are undertaking the largest network reconfiguration in our history." According to Dykes, UPS's "planned reductions are in line with the total Amazon volume decline.' This article originally appeared on Cincinnati Enquirer: UPS to cut jobs and 164 buildings due to tariffs. Are any in Ohio?
Newsweek
30-04-2025
- Business
- Newsweek
Are UPS Layoffs Because of Trump's Tariffs? What We Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. United Parcel Service has said it will be cutting 20,000 jobs and shutting 73 buildings, as UPS highlighted the "highly uncertain" trading environment in which it is now operating. However, the company said that the decision was driven by the increasing automation of its production facilities, as well as a decline in shipping volume due to its Amazon "glide down" plan unveiled in late January. Newsweek has reached out to UPS via email for comment. Why It Matters UPS is the largest courier in the U.S. and ranks among the country's top companies by revenue, having generated $91.1 billion last year. As a major player in the global logistics industry, the company said that the administration's trade policies will demand greater adaptability and strategic oversight in the near-future, but that it remains confident in its ability to navigate the evolving conditions. What To Know The announcement came alongside the release of the company's first-quarter earnings. UPS saw a Consolidated Revenues of $21.5 billion, down from $21.7 billion a year prior. In the release and subsequent earnings call, UPS executives gave several reasons for the decision to shutter 73 U.S. buildings and lay off 20,000 workers, which is in addition to the 12,000 it said it would be cutting last year. The company said that the latest moves comprised part of its ongoing "Network Reconfiguration and Efficiency Reimagined" initiative, aimed at streamlining the business "through automation and operational sort consolidation in our U.S. Domestic network." UPS said that it expects this to result in $3.5 billion of total cost savings in 2025. In a call following the results, Executive Vice President Nando Cesarone said that UPS plans to incorporate automation across its facilities, with 400 becoming partially or fully automated by the end of this process. This, alongside the application of artificial intelligence, will result in a "much more efficient operation with less dependency on labor," Cesarone said. File photo: A United Parcel Service Inc. (UPS) truck is parked at a distribution center on April 4, 2025 in San Diego, California. File photo: A United Parcel Service Inc. (UPS) truck is parked at a distribution center on April 4, 2025 in San Diego, Financial Officer Brian Dykes added that the planned layoffs and building closures were "in line with the total Amazon volume decline." In January, UPS announced a "glide down" plan to cut transported order volumes with the e-commerce giant "more than 50 percent by the second half of 2026." During the first quarter, Dykes said that package volume from Amazon had already declined by 16 percent, adding that this "was more than we originally planned." However, CEO Carol Tomé added: "Sixty percent of the volume that we're gliding down is not profitable for us, and by gliding that down, we actually give ourselves financial flexibility to address other scenarios that might come our way." While the company did not attribute the layoffs or business closures to tariffs directly, Tomé said that the need for adaptability and efficiency had been heightened by the administration's trade policies. U.S.-China trade lines comprised around 11 percent revenue in 2024, the company said, making it the UPS's most profitable trading route. However, it expects any weakening demand due to the high tariffs on China to be "partially offset" by growth in China to non-U. S. lanes, as well as more goods being shipped to the U.S. from other countries. What People Are Saying UPS CFO Bryan Dykes, during Tuesday's earnings call, said: "The macro environment is highly uncertain due to changing trade policy and tariff uncertainty. As a global carrier, the eventual outcomes could result in pressure in some parts of our business and create new opportunities in others. "We've modeled several different scenarios for how the balance of the year might play out so that we can quickly pivot, continue supporting our customers, and lean into growth." UPS CEO Carol Tomé said that many of the company's small- and medium-sized business customers are "100 percent single-sourced from China," and that the 145-percent tariffs on Chinese goods was "causing so much uncertainty in the marketplace." "If we go back to 2018 when China tariffs were imposed, we saw trade move, China to U.S. decline, but China the rest of the world increased, and it all leveled out and our international business actually grew," Tomé said. "So because of our integrated network and our [global] presence, we'll be able to manage through this." The International Brotherhood of Teamsters, a labor union representing an estimated 300,000 UPS hourly workers, said in response to the layoff announcement: "United Parcel Service is contractually obligated to create 30,000 Teamsters jobs under our current national master agreement. If UPS wants to continue to downsize corporate management, the Teamsters won't stand in its way. But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight." What Happens Next UPS said that the layoffs would take place over the course of 2025, while the 73 buildings were scheduled for closure by June. "We are continuing to review our network and may identify additional buildings for closure," it added. CEO Carol Tomé said UPS would not be updating its full-year outlook "given today's level of uncertainty." "Once we are through the second quarter, we will hopefully have more clarity about tariffs and trade and the implications for demand dynamics, and we'll provide an update at that point," she added. CFO Bryan Dykes said that international revenue is expected to fall around 2 percent from 2024, "due to lower demand-related surcharges and trade uncertainty."
India.com
30-04-2025
- Business
- India.com
UPS MASSIVE Layoff: 20,000 Jobs To Be Cut, 73 Facilities To Be Shut Down
New Delhi: United Parcel Service (UPS) has said that it will be slashing 20,000 jobs, shutting down 73 facilities amidst new global trade tariffs announced by US President Donald Trump's. The layoffs are also a part of the logistics company's planned reduction in deliveries for "We expect to reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025. We are continuing to review our network and may identify additional buildings for closure," UPS said in its first quarter earnings report on April 29. As of March 31, 2025, we continue to evaluate the impact of expected changes in volume on our air network. We anticipate $3.5 billion of total cost savings will be delivered from Network Reconfiguration and Efficiency Reimagined in 2025," UPS said. The company announced first-quarter 2025 consolidated revenues of $21.5 billion, a 0.7% decrease from the first quarter of 2024. Consolidated operating profit was $1.7 billion, up 3.3% compared to the first quarter of 2024, and up 0.9% on a non-GAAP adjusted basis. Diluted earnings per share were $1.40 for the quarter; non-GAAP adjusted diluted earnings per share were $1.49, 4.2% above the same period in 2024, UPS said.
Yahoo
29-04-2025
- Business
- Yahoo
UPS cutting around 20,000 jobs due to 'new or increased tariffs'; 73 buildings closing
The United Parcel Service (UPS) is expected to reduce its workforce by roughly 20,000 during 2025, citing "new or increased tariffs" and "changes in general economic conditions in the U.S. or internationally" for the cuts. UPS announced the layoffs April 29 in its first quarter earnings report, in which the parcel delivery service said it made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago. Consolidation efforts for UPS come as President Donald Trump's looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout. For UPS specifically, it cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, which accounted for 11.8% of its overall revenue in 2024, CNBC reported. "The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," Carol Tomé, UPS's chief executive officer, said in the report. "The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.' White House press secretary Karoline Leavitt lashed out at Amazon after a report said the e-commerce giant was planning to list the costs of Trump's tariffs next to the total prices of products, which Leavitt called "a hostile and political act" while speaking to reporters on April 29. In addition to the position cuts, UPS said it plans to close 73 leased and owned buildings by the end of June 2025, according to the earnings report. "We are continuing to review our network and may identify additional buildings for closure," the Atlanta-based parcel delivery service said. The job cuts and building closures are expected to save UPS $3.5 billion in 2025, the earnings report says. UPS' consolidation and cost-saving initiative, "Network Reconfiguration and Efficiency Reimagined," is expected to end in 2027, according to the parcel delivery service. UPS, the world's largest package delivery firm, forecasted in January a full-year revenue of $89 billion, CNBC reported. USA TODAY contacted UPS on April 29 for further comment. In January 2024, UPS announced the layoffs of nearly 12,000 employees across the globe to "align resources for 2024." During a company earnings call at the time, Tomé said the cuts would save the company nearly $1 billion. His comments came after UPS underwent a massive year-over-year decline in revenue. 'I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row,' Tomé said in a statement released by the company in 2024. '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.' This article originally appeared on USA TODAY: UPS cutting 20,000 jobs, closing 73 buildings in 2025 Sign in to access your portfolio
Yahoo
29-04-2025
- Business
- Yahoo
UPS cutting around 20,000 jobs due to 'new or increased tariffs'; 73 buildings closing
The United Parcel Service (UPS) is expected to reduce its workforce by roughly 20,000 during 2025, citing "new or increased tariffs" and "changes in general economic conditions in the U.S. or internationally" for the cuts. UPS announced the layoffs April 29 in its first quarter earnings report, in which the parcel delivery service said it made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago. Consolidation efforts for UPS come as President Donald Trump's looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout. For UPS specifically, it cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, which accounted for 11.8% of its overall revenue in 2024, CNBC reported. "The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," Carol Tomé, UPS's chief executive officer, said in the report. "The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.' White House press secretary Karoline Leavitt lashed out at Amazon after a report said the e-commerce giant was planning to list the costs of Trump's tariffs next to the total prices of products, which Leavitt called "a hostile and political act" while speaking to reporters on April 29. In addition to the position cuts, UPS said it plans to close 73 leased and owned buildings by the end of June 2025, according to the earnings report. "We are continuing to review our network and may identify additional buildings for closure," the Atlanta-based parcel delivery service said. The job cuts and building closures are expected to save UPS $3.5 billion in 2025, the earnings report says. UPS' consolidation and cost-saving initiative, "Network Reconfiguration and Efficiency Reimagined," is expected to end in 2027, according to the parcel delivery service. UPS, the world's largest package delivery firm, forecasted in January a full-year revenue of $89 billion, CNBC reported. USA TODAY contacted UPS on April 29 for further comment. In January 2024, UPS announced the layoffs of nearly 12,000 employees across the globe to "align resources for 2024." During a company earnings call at the time, Tomé said the cuts would save the company nearly $1 billion. His comments came after UPS underwent a massive year-over-year decline in revenue. 'I want to thank UPSers for providing the best on-time performance of any carrier for the sixth year in a row,' Tomé said in a statement released by the company in 2024. '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.' This article originally appeared on USA TODAY: UPS cutting 20,000 jobs, closing 73 buildings in 2025 Sign in to access your portfolio
