United Parcel Service (UPS)

UPS is one of the market participants in the field of logistics, offering its customers a range of services, from express delivery to international transportation of large heavy goods, optimization of logistics of international trade operations.

The UPS Foundation, established in 1951, runs global charitable programs and supports local, national, and global communities. In 2018, UPS and its active and retired employees donated more than $114.9 million to charities around the world.

Performance indicators

2021: 7th place in the global air cargo market

Data for 2021

History

2024: Dismissal of 12,000 employees due to lack of money

On January 30, 2024, the American company United Parcel Service (UPS), specializing in express delivery and logistics, announced a reorganization aimed at improving its financial situation. The program provides for the reduction of approximately 12 thousand employees.

UPS's business has grown to a record high since the start of the COVID-19 pandemic thanks to a sharp increase in online shopping. The company's revenue in 2022 for the first time exceeded $100 billion. However, this was followed by a recession, which is explained by the current macroeconomic situation, increased costs and malfunctions. As a result, organizational changes aimed at reducing costs were required.

𝓲

Unsplash

It is said that against the background of COVID-19, the UPS staff has expanded to about 540 thousand people. By the end of 2023, the number of personnel decreased to approximately 495 thousand employees - primarily due to outflows, and not layoffs. But this was not enough, and the company is forced to make additional staff cuts. Of the 12 thousand dismissed employees, a significant part will be managers. It is expected that in the future this measure will provide savings of $1 billion per year.

In addition, UPS will explore "strategic alternatives" for Coyote Logistics, a trucking broker in trucking. At the time of the acquisition of this business in 2015, the structure generated about $2 billion in annual revenue. During the COVID-19 pandemic, the figure almost doubled, but after that it began to fall. It is noted that UPS may consider the option of selling the Coyote division.

We are going to align our organization with the strategy being implemented and direct resources to the most important areas, "says Carol Tome, CEO of the company[1]

2022: Shutdown of activities in Russia and Belarus

On April 26, 2022, the American logistics corporation UPS suspended all commercial activities in Russia and Belarus. The decision was made against the background of Russia's military special operation in Ukraine.

2020: Investing in electric bus developer Arrival

On October 14, 2020, Arrival announced that it had raised $118 million in investments from funds managed by the investment company BlackRock. What time, according to the results of the round of financing, the British developer of electric buses, founded by the former Deputy Minister of Communications Denis Sverdlov, was not reported. Read more here.

2019

Buying a stake in TuSimple and launching unmanned trucks

In mid-August 2019, UPS announced the acquisition of a minority stake in TuSimple, as well as the use of self-driving trucks of the purchased startup. These vehicles began carrying packages up to 1,000 miles (1,609 km) between USP distribution centers in Phoenix (Arizona) and Dallas (Texas). Read more here.

Building a subsidiary to use drones

On July 23, 2019, United Parcel Service (UPS) announced the creation of UPS Flight Forward, a subsidiary that will deliver packages using drones. Read more here.

Notes