Shares of UPS Inc. continue their ascent on Monday following the announcement that they would be cutting 1800 management positions and predicted a rise in their fourth-quarter earnings. The world’s largest carrying service is restructuring management and administrative departments to encourage greater efficiency and help them move into recovery mode. The optimistic forecast by the company named streamlined operations and operational cost reductions as reasons for a more successful fourth quarter.
The report prompted UPS shares to rise $2.66, or 4.4 percent, to $62.83 in afternoon trading on Monday, following Friday's 4.8 percent improvement. 1,100 employees will be presented with a voluntary severance package as part of the reductions. Further trimming will be performed with attrition and more layoffs. U.S. regions will be cut from five to three and U.S. Districts will be slashed from 46 to 20 in April.
The division accounts for approximately 60 percent of UPS annual revenue. The company announced that the office consolidation and management cuts will have no affect on the sales and operations departments.
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