UPS, in the throes of a cost-cutting drive, said on Tuesday that it had reduced its work force by 48,000 employees this year.
The Atlanta-based delivery company, which had nearly half a million employees at the start of the year, said it had cut 34,000 positions among its drivers and warehouse workers. The other 14,000 positions came out of management’s ranks.
UPS’s stock price has long lagged the wider stock market, putting pressure on its leaders to deliver stronger profits. News of the work force reductions and better-than-expected third-quarter results prompted a 7 percent jump in UPS’s shares on Tuesday morning.
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” Carol Tomé, UPS’s chief executive, said in a news release.
The company reported net income of $1.3 billion in the third quarter, down from $1.5 billion in the same period a year earlier. Revenue totaled $21.4 billion in the third quarter, a decline from $22.2 billion a year earlier.
Many of UPS’s employees are members of the Teamsters union, which in April warned UPS that it would fight job cuts that were not in line with its labor contract. On Tuesday, Ms. Tomé said UPS was “in compliance with the terms of our contract.”
UPS’s business has also been roiled by the imposition of tariffs this year. The volume of packages sent from China to the United States fell nearly 30 percent in the third quarter.
Peter Eavis reports on the business of moving stuff around the world.
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