UPS to cut 12k jobs (contractor, union, buying, companies)
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This is the clearest sign that the economy is in a recession or stalling. When shipping companies start to reduce workforce then it means that less goods are being sold. UPS is the one area where you can't really increase productivity much without hiring more delivery drivers. It's not like tech or retail work that can be replaced with automation.
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Amazon using their own trucks has probably cut deeply into their business, resulting in less demand. Then there is the higher cost of labor from the last union deal. Neither of those is related to recession or stalling. Here you can't drive two blocks without seeing an Amazon delivery truck, people seem to be buying, just not using UPS. Amazon has 30,000 vans now, but also switched from UPS to USPS last year when they got a better deal, plus Sunday deliveries.
Amazon using their own trucks has probably cut deeply into their business, resulting in less demand. Then there is the higher cost of labor from the last union deal. Neither of those is related to recession or stalling. Here you can't drive two blocks without seeing an Amazon delivery truck, people seem to be buying, just not using UPS. Amazon has 30,000 vans now, but also switched from UPS to USPS last year when they got a better deal, plus Sunday deliveries.
This. Amazon delivery is taking a toll on UPS and Fed Ex, and even the USPS is getting into the game with USPS Ground Advantage shipping. I think it’s only up to 20lb packages, but it’s 3-5 days across all zones and the prices are very competitive.
Besides, after the big raises the union negotiated for employees, is it any surprise that they’re cutting back employees? Sure, a veteran UPS driver can now make up to $170k, but now they’re going to have to do much more with less.
This. Amazon delivery is taking a toll on UPS and Fed Ex, and even the USPS is getting into the game with USPS Ground Advantage shipping. I think it’s only up to 20lb packages, but it’s 3-5 days across all zones and the prices are very competitive.
Besides, after the big raises the union negotiated for employees, is it any surprise that they’re cutting back employees? Sure, a veteran UPS driver can now make up to $170k, but now they’re going to have to do much more with less.
FedEx dumped Amazon back in 2019 so Amazon’s shift isn’t hurting them but it is hurting UPS
Amazon using their own trucks has probably cut deeply into their business, resulting in less demand. Then there is the higher cost of labor from the last union deal. Neither of those is related to recession or stalling. Here you can't drive two blocks without seeing an Amazon delivery truck, people seem to be buying, just not using UPS. Amazon has 30,000 vans now, but also switched from UPS to USPS last year when they got a better deal, plus Sunday deliveries.
These cuts are due to returning to normal delivery levels now that COVID-19 is over. Also, UPS has to afford those new union wage levels.
This. Amazon delivery is taking a toll on UPS and Fed Ex, and even the USPS is getting into the game with USPS Ground Advantage shipping. I think it’s only up to 20lb packages, but it’s 3-5 days across all zones and the prices are very competitive.
Besides, after the big raises the union negotiated for employees, is it any surprise that they’re cutting back employees? Sure, a veteran UPS driver can now make up to $170k, but now they’re going to have to do much more with less.
The Wall Street Journal reporting indicated that the bulk of the job cuts were to administrative staff and contractors. Part of the issue was that admin could work from home (WFH) whereas drivers and warehouse workers couldn't, and they and their union were complaining about it.
By cutting WFH staff, some of whom will be replaced by AI, they can sidestep that issue. In fact, the head of UPS is also demanding everyone return to the office for all five days each week.
Amazon using their own trucks has probably cut deeply into their business, resulting in less demand. Then there is the higher cost of labor from the last union deal. Neither of those is related to recession or stalling. Here you can't drive two blocks without seeing an Amazon delivery truck, people seem to be buying, just not using UPS. Amazon has 30,000 vans now, but also switched from UPS to USPS last year when they got a better deal, plus Sunday deliveries.
Good point. But I question the extent to which non-Amazon sales have declined. There are so many online catalogs, many of which have far better prices than Amazon for the same or equivalent items, that people are still buying. And those companies use UPS. Maybe drivers aren't the staffers that are being cut. Maybe UPS is streamlining its office operations.
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Quote:
Originally Posted by Ruth4Truth
Good point. ... Maybe drivers aren't the staffers that are being cut. Maybe UPS is streamlining its office operations.
And surely trimming it's costly and meddlesome middle managers (of which there are plenty at UPS). It's not a 'fun' place to work. Quite similar to being in the military and always under a very scrupulous watchful eye.
When working for UPS.... You WORK!
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