As UPS made the announcement it also said it expected its fourth quarter 2009 results would be better than anticipated, in the range of 73-75 cents per share instead of the previously projected 58-65 cents.
'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 chief financial officer. 'However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses.'
In announcing the job cuts, UPS said, “By leveraging technology and the management strengths of its people, UPS will reduce the number of districts and regions in its U.S. small package operation.” It will reduce regions from five to three and its districts from 46 to 20. As part of the realignment, the company said it would expand its outreach to customers by strengthening local sales and marketing efforts.
The company said normal attrition will minimize some job displacements, and about 1,100 employees will be offered a voluntary separation package. Other employees will receive severance benefits and access to support programs based on length of service.
