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The United Parcel Service (UPS) has announced massive layoffs ahead of yet another busy shopping season. They'll be cutting around 48,000 jobs from both their operational workforce, including drivers, and their management force.
So how is this going to affect the upcoming holiday shopping season? Well, the good news is, it probably won't. Business Strategist Jason Taylor addressed those concerns, saying, "UPS is in the business of delivering things to you on time, and they're not going to do something which destroys their ability to deliver something to you on time."
Essentially, he doesn't think there's any cause for panic here. Instead, this looks more like a natural pivot to reflect how the economy has changed post-pandemic. He explained, "They had a great inflated demand for what they offer, caused by COVID." Now, with everything opened back up, and more people actually leaving the house and shopping in person, UPS just doesn't need as much staff.
Taylor went on to say that UPS isn't the only company in the shipping and online retail space in this position. He pointed out, "Amazon has also gone through this, and they have laid off a lot of people—a lot of permanent jobs that probably just aren't needed anymore."
He says there just isn't as much demand for the services they offer anymore, so they're trying to cut back on those salaries and benefits.