UPS to cut 12,000 jobs 5 months after agreeing to new labor deal

UPS said Tuesday it will cut 12,000 jobs, with the mass layoff coming only months after the delivery company averted a massive strike by agreeing to a new labor contract.

The Teamsters in August voted to approve a tentative five-year contract agreement with UPS, putting a final seal on contentious labor negotiations that has threatened to disrupt package deliveries for millions of businesses and households nationwide.

UPS has roughly 500,000 employees. On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company's headcount UPS will realize $1 billion in cost savings. Tome also said that UPS is ordering employees to return to the office five days a week this year.

"We are going to fit our organization to our strategy and align our resources against what's wildly important," Tome said.

https://www.msn.com/en-us/money/companies/ups-to-cut-12-000-jobs-5-months-after-agreeing-to-new-labor-deal/ar-BB1huDwr