118-year-old shipping giant just delivered workers a harsh message

Core Insights - UPS reported a mixed fourth quarter earnings, beating revenue expectations but announcing significant job cuts as part of a cost-reduction strategy [1][2] Financial Performance - Consolidated revenue for the quarter was $24.5 billion [9] - Diluted EPS was $2.10, with non-GAAP adjusted EPS at $2.38 [9] - Quarterly dividend declared at $1.64 [9] Job Cuts and Operational Changes - UPS plans to cut 30,000 operational jobs by 2026 as part of a broader cost-reduction initiative [1][6] - This follows a previous announcement of 48,000 job cuts, including 34,000 operational and 14,000 management positions [5] - The company aims to reduce operational hours to approximately 25 million, which will include job cuts [7] Cost Management Strategy - UPS is focusing on resizing its U.S. network and eliminating variable, semi-variable, and fixed costs [6] - The company has identified 24 facilities for closure in the first half of 2026, with further evaluations planned for additional sites later in the year [7] - Estimated capital expenditures for 2026 are around $3 billion, with dividend payments projected at approximately $5.4 billion [4]