From BizJournals.com
"Consolidation troubles are causing United Parcel Service Inc. to cut 1,200 jobs at its unprofitable UPS Supply Chain Solutions division.
"In a conference call with analysts, company officials said UPS' Supply Chain and Freight segment, which includes UPS Supply Chain Solutions, UPS Freight and several other smaller subsidiaries, has experienced high overheard costs stemming from two large consolidations. The segment on Thursday reported a loss of $19 million for the third quarter, compared with net income of $70 million a year earlier.
"UPS has had difficulties integrating Menlo Worldwide Forwarding, which it bought in 2004, into UPS Supply Chain Solutions, and Motor Cargo Inc., which it bought in August 2005, into UPS Freight. Both integrations have been completed, but they took longer and were more difficult than anticipated, leading to high overhead, officials said.
"The UPS Freight division still managed to produce a profit for the third quarter, but UPS Supply Chain Solutions pushed the entire Supply Chain and Freight segment into a loss.
"To cut costs, UPS will shed 1,200 jobs from UPS Supply Chain Solutions during the fourth quarter. The unit employs 32,000 workers worldwide.
Full article:
http://www.bizjournals.com/louisville/stories/2006/10/16/daily21.html
"Consolidation troubles are causing United Parcel Service Inc. to cut 1,200 jobs at its unprofitable UPS Supply Chain Solutions division.
"In a conference call with analysts, company officials said UPS' Supply Chain and Freight segment, which includes UPS Supply Chain Solutions, UPS Freight and several other smaller subsidiaries, has experienced high overheard costs stemming from two large consolidations. The segment on Thursday reported a loss of $19 million for the third quarter, compared with net income of $70 million a year earlier.
"UPS has had difficulties integrating Menlo Worldwide Forwarding, which it bought in 2004, into UPS Supply Chain Solutions, and Motor Cargo Inc., which it bought in August 2005, into UPS Freight. Both integrations have been completed, but they took longer and were more difficult than anticipated, leading to high overhead, officials said.
"The UPS Freight division still managed to produce a profit for the third quarter, but UPS Supply Chain Solutions pushed the entire Supply Chain and Freight segment into a loss.
"To cut costs, UPS will shed 1,200 jobs from UPS Supply Chain Solutions during the fourth quarter. The unit employs 32,000 workers worldwide.
Full article:
http://www.bizjournals.com/louisville/stories/2006/10/16/daily21.html
