The world's largest package delivery company, United Parcel Service (UPS), is to shed 1,800 management and administrative jobs.
A reorganisation of one of its US operations has led to the job cuts from the firm's 340,000 US payroll.
But the firm, seeing improved shipping volumes, also increased its fourth-quarter profit forecast ahead of the results being released on 2 February.
UPS and rival FedEx are seen as strong indicators for the US economy.
The results of UPS are watched keenly because there is a strong correlation between demand for sending packages and the state of the US economy.
UPS said the job cuts will come as part of a reorganisation of its domestic small package division.
It is cutting the number of regions to three from five and the number of districts to 20 from 46.
"They're not cutting sales jobs, they're cutting back office jobs," said analyst Helane Becker of Jesup & Lamont Securities. "They take out back office, they take out cost."
No comments:
Post a Comment