In response to a combination of factors including decreasing demand, escalated labor expenses, and financial setbacks, United Parcel Service (NYSE:UPS) has introduced an option for early retirement among its pilot workforce, as reported by a local television station on Thursday.
This development marks a departure from UPS’s previous practices, as the company last reduced its pilot workforce in 2010 when 109 pilots were furloughed. The current initiative aims to encourage 167 pilots to opt for early retirement, according to a news release from WDRB, a television station headquartered in Louisville, Kentucky.
Headquartered in Atlanta, UPS maintains a workforce of approximately 3,400 pilots. At this time, the company has not issued an immediate response to the details outlined in the report.
On August 8, UPS revised its projections for annual revenue and profitability, attributing the adjustments to increased labor expenditures linked to a recently established agreement with over 340,000 employees represented by the International Brotherhood of Teamsters. It’s important to note that UPS pilots are affiliated with a distinct labor union.
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