UPS Says 4Q Earnings to Exceed Guidance; Will Cut Jobs
UPS Inc. said Friday its fourth-quarter earnings will exceed an earlier forecast and that it plans to cut about 1,800 management and administrative positions.
Earning will be 73 cents to 75 cents per share, up from a previously estimated 58 to 65 cents, UPS said in a statement.
Effective in April, UPS will cut the number of its U.S. regions to three from five and its domestic districts to 20, from 46. The company said it would “expand its outreach to customers by strengthening local sales and marketing efforts.”
“The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management,” said Kurt Kuehn, UPS’ chief financial officer.
“However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses,” he said in a statement.
The restructuring will eliminate about 1,800 management and administrative positions, UPS said. Normal attrition will minimize some job displacements and about 1,100 employees will be offered voluntary separation packages, while other impacted employees will receive severance benefits and access to support programs based on their length of service.
UPS, ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, will provide additional details when its earnings are released on Feb. 2.
