UPS to cut 12,000 jobs – What about New Jersey?

The United Parcel Service, or UPS, has announced layoffs are coming in 2024. Part of the reason is so the company can better align resources as we head deeper into the year.

But the larger reason for the layoffs stems from a decline in profits. The last three months of 2023 in particular saw a decline in package deliveries.

According to CNBC, estimates for UPS did not meet expectations on Wall Street, with reported "drops in shipping volume, both internationally and domestically, in its fourth-quarter earnings report." As a result, the company plans to eliminate 12,000 jobs from its workforce.

According to CEO Carol Tomé, the company "will save the company about $1 billion in costs" as a result of the reductions. All of the company's business segments saw declines in 2023.

According to CNBC, "The company reported a 7.4% drop in average daily volume domestically and an 8.3% decrease internationally."

What about New Jersey?

At the moment, the announcement of the 12,000 jobs to be cut does not specify which particular region of the world or segment of the business would be most impacted. But that doesn't mean New Jersey will be spared.

According to CNBC, "The earnings report did not directly mention any financial impacts from negotiations with the Teamsters in August over labor contracts," but rather pointed to the "macroeconomic environment more broadly as contributing to the 'disappointing' year."

That's important to note since a vast majority of those who work for UPS in New Jersey are part of the Teamsters Union, which recently approved a new contract agreement for its members in September 2023.

As for job cuts potentially impacting New Jersey? CNN reports that "managers and contractor positions will make up most of the" positions to be eliminated. UPS also announced that it's planning to bring its remaining employees back to the office five days a week.