UPS cutting 12,000 jobs after decline in package volume

Details: The job cuts — which represent about 2.4% of the company's workforce — will primarily affect management and contract positions, CEO Carol Tomé said on an earnings call.

• The company expects to save about $1 billion on the reductions.

State of play: The job cuts come several months after UPS reached a new labor deal with the Teamsters union to avert a potential strike.

• The company on Tuesday said that it's still recovering package volume that customers diverted to its competitors ahead of the potential labor stoppage.
• So far, UPS has recaptured 60% of that lost business, Tomé said.

What they're saying: "We don't expect these jobs to come back," even if package volume increases, CFO Brian Newman said.

• "We've identified new ways of working," Tomé added.

Of note: UPS plans to require its workers to return to the office five days a week in 2024, Tomé said.

Go deeper: Fully remote work is on the decline in the U.S.