Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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

Index Last Change % Change
Dow 17,694.68 284.96 1.64%
Nasdaq 4,779.25 87.38 1.86%
S&P 500 2,070.77 34.68 1.70%
Treasuries 1.48 0.02 1.10%
Data as of 9:41pm ET
Company Price Change % Change
Bank of America Corp... 13.19 0.49 3.86%
Southwestern Energy ... 13.03 -0.86 -6.19%
Alcoa Inc 9.10 -0.23 -2.47%
Micron Technology In... 13.19 0.20 1.54%
Apple Inc 94.40 0.81 0.87%
Data as of 4:03pm ET
Sponsors

Sections

Lesedi La Rona, the 1,109-carat diamond found last November, fails to find a bidder willing to pay the minimum price in London auction. More

Investors are already sifting through the Brexit market rubble for opportunities. Morgan Stanley compiled a list of highly-rated stocks that have limited or no direct exposure to the situation in the U.K. More

West Elm partners with Casper, a two-year-old startup, to get in on the $14 billion mattress industry. More