Delivering contracts

1 minute read

After missing Wall Street revenue expectations at the end of 2023, UPS rebounded in a big way this April by securing the U.S. Postal Service’s highly coveted and lucrative air-delivery contract, which runs through 2030. The company beat out its main competitor FedEx, which held the contract for the past 20 years and received about $2 billion from USPS annually. Investors are feeling optimistic: UPS’s most recent quarterly profits surpassed expectations despite weaker package-delivery demand as the company weathers the transition out of the pandemic retail economy. The more than century-old company secured another significant deal last year, negotiating the largest private-sector union contract in the U.S. with the Teamsters without a strike. The five-year agreement boosts pay and enhances working conditions and safety, including by putting air-conditioning in more trucks. But just months after union ratification, in January UPS announced 12,000 layoffs, which CEO Carol Tomé said would generate $1 billion in savings as the logistics behemoth shifts its focus to higher-margin shipments.

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