UPS is cutting 12,000 jobs and $1 billion in costs after a year of declining business. UPS CEO Carol Tome said, “2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth.”

The 12,000-job layoff comes as the company is facing high labor costs. UPS reached a deal with the Teamsters union in July 2023, which raised full-time delivery driver salaries to $170,000 a year, and raised part-time employee hourly pay to at least $25.75 an hour.

After reaching an agreement with the Teamsters, Tome said in a UPS press release, “Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers.”