200 UPS employees accept the Voluntary Buyout Package
UPS, top air freight carrier will incur a one time cost of $80 million, with almost 200 of its employees accepting the voluntary buyout package. This cost will be recorded as expenses in the first quarter and is expected to generate a positive return in a couple of years. This buyout is part of a continuous effort to consolidate various functional areas like network planning, procurement, human resources, finance and sales. This deal was initiated in December 2006 to employees who were 50 years old or more and with a minimum of 10 years service. Employees at UPS usually retire at age 65.
UPS is ranked as No.1 in the for-hire carrier business in the US and Canada. They provide package delivery and supply chain solutions. The main business of the company is time-definite delivery of packages and documents Supply chain solutions include freight forwarding, customs brokerage, fulfillment, returns, financial transactions, repairs and less-than-truckload (LTL) transportation services. UPS operates in three segments - U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations. In 2005, UPS delivered more than 14.7 million shipments per day, globally. Added to this, the supply chain solution service goes out to its clients in 186 countries. In 2005, UPS acquired Overnite Corp. to expand its and expanded its LTL transportation services. Overnite Corp. offers regional, inter-regional and long-haul LTL services in all 50 states, Canada, Puerto Rico, Guam, the Virgin Islands and Mexico.