(Bloomberg) -- United Parcel Service plans to use automation and efficiency on package sorting to reduce some of the roughly 140,000 “inside” workers who aren’t drivers, according to a Citigroup report by analyst Christian Wetherbee.  

  • The company plans to discuss “headcount reductions” at an investor-day meeting in March, Wetherbee says
  • UPS cited “material productivity opportunities” at a breakfast meeting on Thursday with analysts
  • The job cuts would allow UPS to lower labor costs beginning in year two of the new labor contract, and the overall union workforce of about 300,000 currently may be lower at the end of the five-year contract, Wetherbee said

NOTE: UPS Chief Says Year One of Pricey New Labor Deal Will Hurt Most

 

 

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