Job cuts tied to 'volume loss in network,' says multinational, citing 2023 as 'unique and difficult year'
The planned United Parcel Service (UPS) layoffs will affect over 300 workers in Ontario, according to a report.
The American multinational plans to eliminate a shift at its regional air hub at Ontario International Airport next month, resulting in 333 layoffs, reports the Daily Bulletin. This will take effect April 27.
The job cuts are tied to a “volume loss in our network,” said the employer in a March 6 notice to California’s Employment Development Department, which administers Unemployment Insurance.
The company’s Q4 2023 Earnings report revealed that consolidated revenues declined to $24.9 billion, down from the $27 billion recorded last year.
"2023 was a unique and difficult year and through it all we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth," UPS CEO Carol Tomé said in a statement.
The CEO attributed the company's recent performance to the "macro environment," as well as the disruptions that took place amid labour contract negotiations and higher costs associated with the new contract.
UPS plans to layoff 12,000 employees in its workforce, according to previous reports.
Laid-off workers may fill job openings in other UPS locations
The UPS layoffs at its 775,000-square-foot Ontario facility will affect non-union workers and union employees represented by Teamsters Local 63 in Rialto, according to the Daily Bulletin.
Workers set to lose their jobs include 131 employees who load and unload packages, 26 hub supervisors and scores of others, the company said, according to the report.
However, displaced union workers will have “bumping rights,” giving them the option to replace other workers with less seniority under the Local 63’s collective bargaining agreement.
They can find employment at UPS operations in Ontario or at other area UPS facilities, according to company spokesman Matt Skeen. UPS operates in Rialto, Rancho Cucamonga and Fontana.
“Generally, we always make a good faith effort on the part of the company to place laid-off employees in open positions when they become available,” Skeen said. “If I was a package driver, for example, I might have the option of filling another job inside the Ontario facility.”
Meanwhile, Teamsters is working to ensure full-time positions belonging to its members will be maintained, said Teamsters Local 63 president Sam Stewart in the Daily Bulletin report.
“We’re in the process of having more meetings with the company to reconfigure some of these jobs and get ahead of the game,” he said. “We want everyone to transition smoothly into other jobs.”
The union has gone years without significant layoffs at the UPS facility, according to the report. Levi Strauss and Citigroup have also announced their plans to cut their workforce numbers this year.
Employers and employees alike are anticipating that layoffs will continue this year, thanks to fears of recession and the growth of artificial intelligence (AI), according to a previous report.
