United Parcel service has plan to restructure its U.S. operations and cut 1,800 management and administrative jobs from its 340,000 person domestic payroll. As a result UPS, the world's leading delivery service, increased its fourth-quarter profit forecast prior to the release of the result posting in early February.
The news comes in the aftermath of the US Labor Department announcement that the US lost 85,000 jobs in December. The condition of UPS and competing delivery service FedEx are viewed as telling indicators for the US economy.
The volume and demand for packages being sent and received is seen as representative of the health of the economy. These latest cut backs are organizational changes so what they mean for the economy is unclear. The number of regions will decrease from five to three while the number of districts will be cut from 46 to 20.
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