In 2024, businesses across different industries will have to make impactful decisions to stay afloat and avoid running into crippling financial trouble. The rise of inflation is affecting everyone from large conglomerates to ordinary workers.

As such, more companies have started increasing the prices of their goods/services, furloughing workers, or both. In the long run, downsizing overhead costs gives businesses more room to absorb inflation and continue flourishing in their respective industries.

Just earlier this month, Americans learned about YouTube, Google, Amazon, and Twitch all laying off staffers they deemed as non-essential. Next up is UPS, with the parcel service set to bid farewell to 12,000 jobs.

Bad news for UPS employees who deliver packages

According to UPS, it's observed a notable reduction in demand for delivery, hence rendering a decent chunk of its workforce unnecessary. The company furthermore predicts that slashing 12,000 jobs will engender $1 billion in savings.

Earlier today, UPS revealed during an earnings meeting that the volume of domestic shipments dropped by 7.4%. Its $24.9 billion in 2023 fourth-quarter revenue likewise suffered a decline from 2022's $27 billion fourth-quarter earnings.

All things considered, last year wasn't all that great for UPS. CEO Carol Tomé went as far as calling 2023 "disappointing." Citing reductions in earnings across the board, Tomé revealed that UPS may even sell Coyote, its freight brokerage venture.

In light of the current circumstances, UPS workers who do manage to avoid layoffs will be expected to work in the office for five days a week going forward.

What's hurting demand for package deliveries?

The everyday American is struggling to make mortgage payments, find childcare, and take care of their utility bills. In light of this, there's less disposable income going around for people to shop online, hence the diminished market for UPS deliveries.

Greater levels of economic chaos directly correlate with people becoming more conservative with their money and working to stretch every dollar. Should the demand for deliveries increase, there's a very real likelihood that UPS may bring on new workers to fill the gap.

In the meantime, people facing layoffs should begin looking for other sources of income sooner rather than later.