UPS is planning to offer buyouts to some of its management-level employees in a bid to trim costs, even as the delivery giant continues to rake in revenue amid the coronavirus pandemic and shift to online ordering and delivery.
Demand for UPS's shipping services has surged since the coronavirus pandemic struck, as shoppers stayed home and bought more products online -- and a reduction in international passenger flights boosted demand for UPS's air network.
At the same time, e-commerce giant Amazon.com’s (AMZN) - Get Report efforts to beef up its own global delivery network as well as competition from Fedex (FDX) - Get Report and other domestic and international delivery companies is prompting Big Brown to focus on being “better, not bigger” CEO Carol Tomé said on last month's earnings call.
While looking to reduce ranks and costs at the top, UPS is not sparing expenses on the front lines. The company last week said it is prepping to hire more than 100,000 seasonal employees ahead of what is expected to be a surge in holiday sales-related package volume.
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