Oct. 28 (UPI) — Delivery company UPS reported on Tuesday higher-than-expected earnings but bigger job cuts in its business turnaround goals.
United Parcel Service revealed its workforce had been cut this year by some 34,000 jobs, about 14,000 more than its estimated reduction of 20,000. In addition, UPS eliminated around 14,000 corporate and management roles.
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” according to UPS CEO Carol Tome.
The cuts have already begun, UPS told CNBC in a statement.
Tome added that with the holiday shipping season quickly approaching, the 118-year-old UPS was “positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”
Meanwhile, Wall Street saw UPS shares rise about 8% during early morning trading.
UPS, with its headquarters in Georgia, initially planned to shutter around 70 facilities.
However, around 93 leased or owned buildings closed in the first nine months of this year year.
Over the summer UPS offered buyouts to full-time drivers as part of its execution of “the largest network reconfiguration” in the company’s history.
According to UPS officials, its turnaround resulted in savings to the tune of $2.2 billion by end of third quarter and an estimated $3.5 billion in year-over-year total savings this year.
The UPS chief said the shipping conglomerate planned to incorporate artificial intelligence into its daily operations.
“The third quarter brought a wave of tariff changes, some expected, others unforeseen, and our team navigated these complexities with exceptional skills and resilience,” Tome says.