UPS to cut 1,800 jobs in U.S. segment realignment

[Dr.Phool]

Source: AP, Cleveland Plain Dealer

Updated at 10:16 a.m.

ATLANTA -- UPS said Friday it will cut 1,800 management and administrative positions to streamline its U.S. small package segment.

The world's largest package delivery company also raised its profit forecast for the fourth-quarter that ended in December, citing improving operations and cost cuts.

About 1,100 employees will be offered a voluntary separation package as part of the work force reduction, UPS said.

UPS has 408,000 employees worldwide. About 340,000 of those workers are in the U.S. The small-package segment, where most of the cuts will come, handles shipments of up to 150 pounds by ground and air.

UPS will reduce its U.S. regions from five to three and its U.S. Districts from 46 to 20 in April. There are no plans to close any operating facilities. UPS said the consolidation of offices will not affect the sales and operations team, including drivers. UPS expects to incur a one-time charge in 2010 because of the restructuring.

UPS Inc., based in Atlanta, raised its fourth-quarter earnings prediction, saying it now expects to earn 73 to 75 cents per share. UPS had previously predicted earnings of 58 to 65 cents per share. UPS will report fourth-quarter earnings on Feb. 2.
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Read more: http://www.cleveland.com/business/index.ssf/2010/01/ups_to_cut_1800_jobs_in_us_seg.html

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Bastards. Profits are up, so they throw more people out.

[Vinnie From Indy]

1. So, is this a sign that the American economy is rebounding?

I doubt it!

[high density]

2. 1800 / 408000 = 0.44% -- 1800 / 340000 = 0.53%

I'm not saying losing 1800 jobs is a good thing, but let's put it into perspective given the size of UPS' workforce.

[No Elephants]

3. It is another drop in a long stream of drops, though.

[No Elephants]

4. Coincidentally, I came to this thread from

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4214660

[nightrain]

5. sad. These are generally petty good-paying jobs with decent benefits...

[V_Byl]

6. Benefits yes...

but they have a LOT of part time workers... that was what their last strike was about, and I don't think full time/part time issue was rectified much. The pay for the part time worker is about $8.00/hr - but you do get full benefits, and they have some tuition reimbursement, etc, which is nice for college kids.

Coincidentally I run my own business (small, internet based) and my wife has a pre existing condition, and we got a nice surprise after her maternity leave that she will no longer be full time, so no health insurance... Been applying at UPS like crazy for that part time job w/ benefits, but this is bad news :(

[Dappleganger]

7. Sorry to hear that. :(

Dh's first layoff was after the birth of our first child and I remember that stress like it was yesterday, namely because he was laid off about a year ago and even though he's doing contract work we have to pay for our own limited health care. Keep your chin up!

[WriteDown]

8. Who wants a petty job though.

:evilgrin:

[OhioChick]

9. UPS to Cut 1,800 Jobs, Says Profit Exceeds Forecast (Correct)

Source: Business Week

January 08, 2010, 11:07 AM EST

(Corrects to say Memphis in fourth paragraph.)
Jan. 8 (Bloomberg) -- United Parcel Service Inc., the world’s largest package-delivery company, plans to cut 1,800 jobs as it shrinks management at a U.S. unit and said fourth- quarter earnings exceeded its forecast.

Profit will be 73 cents to 75 cents a share, more than an October projection of as much as 65 cents, Atlanta-based UPS said today in a statement. Analysts expected 63 cents, the average of 18 estimates compiled by Bloomberg. UPS jumped to the highest intraday price since Oct. 7, 2008.

UPS said it will reduce the number of U.S. operating districts to 20 from 46 to streamline management of its small- package unit, resulting in job eliminations. The changes underscore UPS’s efforts to defend market share in its largest division, which generates about two-thirds of revenue and has posted declining volume for seven straight quarters.

“They are constantly evaluating what they do and how they do things,” said Art Hatfield, a Memphis, Tennessee-based analyst with Morgan Keegan & Co., who rates the shares outperform. “This is a result of seeing they can effectively run the business with fewer people.”


Read more: http://www.businessweek.com/news/2010-01-08/ups-to-cut-1-800-jobs-says-profit-exceeds-forecast-correct-.html

[shawcomm]

10. Can you imagine...

basically knowing your job was cut for a dime per share increase?

[Kittycat]

11. I'm torn on this.

They're cutting management and administrative support. Which basically means they're top heavy, running fat and probably have a lot of duplication of effort going on (which only bogs down the system). There's no mention of cutting the average day-to-day workers or processing teams. On the contrary - I read and article this AM that stated they're keeping their processing locations going. So why would a business have a bunch of extra bureaucracy and layers where they don't need it - just to retain jobs? I don't want to sound like a capitalist, but it's common business sense to me. If the result is an increase in share value - okay.

[Lurks Often]

15. Bureaucracies are almost always top heavy

Bureaucracies are almost always top heavy, government and private alike. Note, when I use the term manager, I use in the general sense of someone that has people reporting to them. A manager's importance and/or prestige in an organization is in part based on how many people report to him, with the other part being how much money they are either responsible for or produce. No vice president or deputy secretary of whatever is going to say "Well gee, things would run smoother without me, so I'll just lay myself off".

Or to put in another way, a government or private industry bureaucracy becomes full of people empire building and playing internal politics, more interested in making themselves look good, deflect blame and mostly in the case of government bureaucracies, get more funding.

[alfredo]

17. We don't know if they were, in fact, top heavy. We only have their word for it.

They may have cut those nearing retirement, and forcing the lower paid younger worker to double up.

It always looks bad when you lay off and have better than expected earnings. It looks greedy.

[Kittycat]

18. I tell you what - I'll let you know.

My good friend's DH is in management with them, and he's relocating to their Atlanta branch from the Chicago region. I'll ask and get back with you next week.

[alfredo]

22. Be sure to give me enough context so I don't have a senior moment.

[Lurks Often]

23. I was making a general comment

about bureaucracies, but the article suggests that while UPS itself made a profit, that specific district or region had either been losing money for 7 straight quarters or showing shrinking profits for 7 straight quarters.

[alfredo]

24. So it is targeted at a specific region. It's probably in an area

that has been hit hard by the bush bust.

[ChromeFoundry]

12. pretty fucked up that a thread where 1800 people are getting pink slips gets unrec'd. n/t

[shawcomm]

13. I hate that the unrecs are anonymous

If you're going to unrec, you should have to show it.

[thesquanderer]

14. They also raised their rates 4.9% this week

http://www.ups.com/rates/

[blueworld]

16. I worked for that company & they suck

When the drivers go on strike, they FORCE everyone else to man the phones & deliver packages. You can't eat or drink at your desk anything except water in a closed sports bottle. You cannot be dating or married to another company employee or one of you has to go. This is the only company that ever made me produce my high school diploma for the job application 20 years after I'd left college. I quit after less than 6 months.

The "management" is rarely the fat cats at the top. It's the supervisors, project managers & team leaders who are "exempt" & do the most efficient jobs. After they get canned, the workload falls onto a bunch of new kids who are clueless about how to manage anything and are therefore worked to exhaustion. Meanwhile the shareholders & upper management sit around licking the money.

I wish Milton from "Office Space" worked at UPS...

[Kittycat]

19. Your description isn't uncommon.

I can't speak to the union protion, but whenever our service departments were overwhelmed or short staffed, it was all hands on deck. Even sales people would come out to assist. Further, most every job I've worked at has allowed more than a beverage at your work station/office - unless you were forced to work through your lunch break or had a medical need. We were also required to do it all while wearing suit coats or dresses. That's just standard old school corporate rules - newer companies operate differently. Businesses would cease to exist if people didn't pick up the work of others in a time of need. So while it might not be my job to do so-and-so's work while they're out sick or tending to a family emergency - I had better help, or the failure of their work to get done could have an impact that could ultimately cost me my job, too.

[WriteDown]

25. Uh?

"When the drivers go on strike, they FORCE everyone else to man the phones & deliver packages..."

What would you expect them to do? When someone goes on maternity leave at my current job, we have to do her job in addition to our own, but that's just the way it is.

[TwixVoy]

20. The recovery is here.

Don't worry.

[OhioChick]

21. Yeah....Don't hold your breath on that. n/t