UPS Takes $263 Million Pretax Hit From Voluntary Retirement Plan
- Program is part of broader effort to improve costs, efficiency
- Annual savings expected eventually to be $200 million
An employee sorts packages at the United Parcel Service Inc. (UPS) Chicago Area Consolidation Hub in Hodgkins, Illinois.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
United Parcel Service Inc. is taking a $263 million pretax charge in the second quarter related to its voluntary retirement plan that offered buyouts to employees.
The plan -- announced in April as part of a broader effort to trim costs and boost efficiency -- is expected to generate annual savings of around $200 million, the company said in a statement Tuesday. The predicted savings hinge on reduced headcount and lower operating costs. Savings from the program won’t be fully realized until the second half of next year, UPS said.