UPS CEO Kicks Off Productivity Drive by Cutting 12,000 Managers

  • AI helps ensure those jobs aren’t coming back, CEO Tomé says
  • Also looking to sell underperforming truckload brokerage unit
UPS to Cut 12,000 Jobs After Missing Estimates
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Carol Tomé changed United Parcel Service Inc.’s. management theme to “Better and Bolder” during contentious labor-union talks last year, leaving investors wondering what the chief executive officer meant. They know now.

On Tuesday, after reporting disappointing earnings, UPS announced it would save more than $1 billion by cutting 12,000 of its 85,000 management jobs. The company also will demand that workers be in the office five days a week. And it will study selling its trucking brokerage business, which has slumped amid a freight recession.