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 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 5:09pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.00 0.00%
Facebook Inc 58.94 0.00 0.00%
General Electric Co 26.56 0.00 0.00%
Cisco Systems Inc 23.19 -0.02 -0.09%
Micron Technology In... 23.91 0.00 0.00%
Data as of Apr 17
Sponsors

Sections

General Mills has scrapped a controversial change to its fine print that some read as eliminating customers' right to sue the company. More

Obamacare sign ups hit 8 million, though final enrollment remains to be seen. More

Office for iPad move is a symbolic victory for Nadella's Microsoft, but the company is still weighed down by many of the same old issues. More

Schwinn, Trek and Cannondale are all iconic American bicycle brands. But none of them are made in the United States. More

As Detroit moves closer to reaching a bankruptcy deal, retired civilian workers are poised to be left worse off than firemen and police officers. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.