Oct 13, 2006 0
Brown trouble – UPS preps for job cuts at Supply Chain Solutions unit
Logistics Management reports on planned job cuts at UPS in the Industry News section here.
UPS announced yesterday that it will be cutting jobs in its Supply Chain Solutions unit in an effort to cut costs and reduce redundancies, according to wire reports. SCS offers shippers various services, including transportation and freight, logistics, international trade, and consulting.
Further more,
UPS SCS director of public relations Susan Rosenberg told Logistics Management that specific numbers for job cuts are not yet available, because the company is still in the process of what the actual numbers will be.
And the motivation behind these job cuts:
While Rosenberg noted that things are smooth for UPS SCS from an operational standpoint, reducing costs are the main driver behind the company’s decision, said Dick Armstrong, president of Armstrong & Associates, a 3PL consultancy.
“UPS’ stockholders are not very happy with the fact that they have not shown improvement towards achieving their target of having operating ratio,” said Armstrong. “The pressure [with these cuts] is to rationalize operations there. It is a large business that contributes-over $4 billion-and it contributes $1 billion to the parent company each year, but…analysts and investors think SCS should have significantly better results going forward, and they have not seen the progress.”
Other wire services report on the same story,
UPS to cut jobs in logistics, freight forwarding unit: AP
UPS Will Make Job Cuts