UPS to cut 1,800 staff

UPS            RECESSION           HR

Global - Some 1,800 US-based UPS staff are expected to be let go as part of the company's efforts to improve performance in its package segment.

UPS said it will leverage technology and the management strengths of its people to reduce the number of districts and regions in its US small package operations.

Effective in April, UPS will reduce is US regions from five to three and its US districts from 46 to 20. The restructuring will eliminate approximately 1,800 management and administrative positions in the country, UPS said in a statement.

"The new management structure creates regions and districts that are better aligned geographically," said Scott Davis, UPS chairman and CEO. "In turn, this will enable more local decision-making and resources to be deployed for our customers.

"The decision to reduce our workforce is difficult and we appreciate the significant contributions of those who will be affected by this change," he said. "But we believe this will allow us to sharpen our focus on profitable growth while being even more nimble in serving our customers."

UPS said there were no plans to close any operating facilities.

The company is also expected to announce better than expected 4Q09 earnings of US$0.73 to US$0.75, up from US$0.58 to US$0.65 per diluted share for the period.

"The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management," said Kurt Kuehn, UPS's CFO. "However, we still anticipate a gradual economic recovery wit improvement more evident as 2010 progresses."

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