UPS Layoffs: 12,000 jobs being axed amid drop in shipping volume

United Parcel Service (UPS) plans to reduce its workforce by approximately 12,000 jobs.

What’s happening at UPS?

In its Q4 2023 earnings release, the package giant reported that it’s grappling with drops in shipping volume — both domestically and internationally.

CEO Carol Tomé told investors during the company’s earnings call that the layoffs will save UPS around US$1 billion in costs.

“2023 was a unique, and quite candidly, difficult and disappointing year,” Tomé said.

“We experienced declines in volume, revenue, and operating profits [at] all three of our business segments.”

According to news outlets, including CNN, the reduction will mostly affect managers and contractor positions.

The company reportedly employs a global workforce of nearly 500,000 people.

Impact on Canadian staff

It remains unclear if any Canadian employees will be let go by UPS.

According to the company’s website, it has approximately 13,000 workers in the country.

Termination agreements for UPS employees

In Canada, non-unionized employees at UPS are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what the Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements during a recession

Major layoffs continue

UPS isn’t the only notable employer that is reducing its workforce in 2024.

Other big names, including Salesforce, Levi Strauss, Microsoft, Rona, eBay, Wayfair, Amazon, YouTube, Newell Brands, Instagram, Citigroup, BlackRock, and Indigo, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• SAP to restructure 8,000 jobs, part of AI push
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.