Saturday, January 9, 2010
UPS To Lay Off 18,000 As It Consolidates Districts, But Nashville Could Benefit
Nashville Business Journal
UPS Inc. said Friday it will cut 1,800 management and administrative jobs, less than 1 percent of its global work force, and raised its earnings guidance for the fourth quarter by 13 percent to 20 percent.
About 1,100 employees will be offered a voluntary separation package as part of the work force reduction, which is designed to streamline the company's U.S. small package business. Other cuts will come through attrition and layoffs, the Atlanta-based company said.
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 delivery or operating facilities.
The Tennessee District office, located at 705 Massman Drive, will remain open, take over Alabama operations, and be renamed the Mid South district, UPS spokesperson Mark Dickens said. No jobs will be lost here, and some workers at closed offices could potentially transfer to Nashville, he said. He did not have a figure for how many people are currently employed at the Nashville district office, but said 40 to 50 employees is typical.
UPS (NYSE: UPS) has 408,000 employees worldwide.
UPS raised its profit forecast for the fourth-quarter that ended in December, citing improving operations and cost cuts. The company expects to post earnings of 73 cents to 75 cents per share for the quarter, up from previous guidance of 58 cents to 65 cents per share. It will report fourth-quarter earnings on Feb. 2.
"The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management," CFO Kurt Kuehn said in a statement. "However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses."
UPS previously cut 15,000 jobs, mostly through attrition, and said in early 2009 that it would freeze management salaries and suspend 401(k) matches for employees.
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