UPS Offers Voluntary Separation For 'Eligible' Pilots; Seeks To Reduce Pilots Amid Drop In Air Freight Volume - Bloomberg
Portfolio Pulse from Happy Mohamed
United Parcel Service Inc. (NYSE:UPS) is offering voluntary separation benefits to eligible pilots in an effort to reduce its workforce amid declining package volume. The company aims to entice 167 senior pilots to retire early. This is the first time since 2010 that UPS has sought to trim its pilot workforce. The company handled 9.4% fewer packages in Q2 2022 compared to the same period in 2021, with a more pronounced decline of 12% in domestic packages traveling via plane.
August 31, 2023 | 6:46 pm
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UPS is offering voluntary separation benefits to eligible pilots due to declining package volume. This could potentially lead to cost savings in the short term.
UPS is facing a decline in package volume, which is likely affecting its revenues. By offering voluntary retirement to pilots, the company could potentially reduce its workforce costs. However, the impact on the stock price is uncertain as it depends on how the market perceives this move - whether as a positive cost-saving measure or a sign of deeper issues within the company.
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