Sandy Springs-based UPS is laying off additional employees as part of its ongoing efforts to improve profitability. This follows the company’s earlier announcement in January that it would cut 12,000 management jobs. While UPS has not provided specific numbers for this latest round of layoffs, it stated Monday that these cuts are part of a broader effort to streamline operations.
The news was first reported by the Atlanta Journal-Constitution with the headline UPS is laying off more employees in an effort to boost profitability.
The company did not clarify which departments or regions would be affected, nor how many of the job losses would impact its Atlanta operations. A UPS spokesperson said in a statement, “We continue to look for ways to increase productivity through process improvements, technology advancements and organization realignment.”
UPS, which employs about 500,000 people, has experienced declines in business following the surge it saw during the COVID-19 pandemic. Online shopping and doorstep deliveries spiked during that time, but volumes have since tapered off.
The layoffs follow a challenging financial period for UPS, which reported decreases in volume, revenue, and operating profit across all its business segments in 2023. UPS CEO Carol Tomé described the year as “difficult and disappointing.” Recent quarterly results for 2024 indicate the company is still struggling, with a 32% year-over-year decline in net income during the second quarter and a 1.1% drop in total revenue, accompanied by rising operating expenses.
UPS has been cutting jobs in its operations by closing facilities, reducing staffing, and embracing automation. The company is aiming to reduce costs by billions over the next five years, focusing on more profitable sectors like health care and small-to-medium-sized businesses.
