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.
