UPS to shed 1,800 jobs

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- UPS announced plans to cut 1,800 jobs as part of a restructuring plan intended to streamline the company's domestic management structure.

The cuts will eliminate management and administrative positions across the country, UPS (UPS, Fortune 500) said in a statement Friday. Approximately 1,100 employees will be offered voluntary separation packages; other impacted workers will receive severance benefits and access to support programs.

"The decision to reduce our workforce is difficult and we appreciate the significant contributions of those who will be affected by this change," said Scott Davis, UPS chairman and chief executive. "But we believe this will allow us to sharpen our focus on profitable growth while being even more nimble in serving our customers."

UPS said the restructuring plan, which takes effect in April, will reduce the number of districts in the company's small-package operation to three from five and the number of regions to 20 from 46. The consolidation does not involve closing operating facilities.

The announcement came the Atlanta-based company said its expects to beat its earnings estimate for the fourth quarter of 2009. The company previously projected it will earn between 58 cents and 65 cents per share during the final quarter of last year. Analysts polled by Thomson Reuters expect earnings per share to fall to 63 cents, a 24% decline compared to same period in 2008.

UPS said it expects to incur a charge in 2010 as a result of the restructuring plan, but said it will be offset by cost savings.

Shares of UPS were up more than 5% in early trading.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 18,070.40 46.34 0.26%
Nasdaq 5,016.93 11.54 0.23%
S&P 500 2,114.49 6.20 0.29%
Treasuries 2.14 0.02 0.85%
Data as of 1:24am ET
Company Price Change % Change
Bank of America Corp... 16.44 0.33 2.05%
Apple Inc 128.70 -0.25 -0.19%
Microsoft Corp 48.24 -0.42 -0.85%
General Electric Co 27.27 -0.04 -0.15%
Chesapeake Energy Co... 16.39 -0.15 -0.91%
Data as of May 4
Sponsors

Sections

President Vladimir Putin announced a new reserve fund for the BRICS nations that could attempt to rival the IMF. More

The London-based startup is on a quest to democratize access to technology and coding with its computer company. More

The London-based startup is on a quest to democratize access to technology and coding with its computer company. More

The financial costs and perks of getting hitched aren't limited to weddings. Your new marital status will be a factor when you file your taxes. For some couples, it means paying a higher tax bill. But others could see tax savings. More