On Tuesday, UPS announced that they will be cutting 12,000 jobs after not meeting Wall Street revenue quotas.
Reports indicate that shipping volumes have decreased nationally and internationally, and the layoffs will save UPS $1 billion.
Because of low shipping numbers, the sales projection look dim for the year. They have projected that the global revenue for the year will be between $92 billion to $94.5 billion.
UPS says that they have projected capital expenditures to be about $4.5 billion and divided payments to be about $5.4 billion.
The layoffs come as UPS employees turned away from a strike this past year when drivers and package sorters approved a five-year contract in August.
The 340,000 Teamster rank-and-file participants approved the deal by more than 86%. This is the biggest margin ever for a contract at the company.
