https://www.cnbc.com/2024/01/30/ups-reports-drop-in-package-volume-stock-tumbles.html New CTO is Indian origin. UPS was more like government company in the past (used to work as consultant for UPS in the past) 12k layoff is huge.
What’s the reason behind the volume drop? Is it because consumption is generally down or their customers like Amazon using internal or competitor services?
My first guess is that people are buying less stuff. Second, I imagine that people are also going to stores in person more and ordering less stuff online.
Both UPS and FedEx ruled the logistics for long time but seems like more players in the market
How is the CTO race relevant? This is completely unrelated to tech lol
UPS never hired H1B for full time job (last one was 2000). He changed the rule and hired many H1Bs for full time job. This potentially triggered huge layoff.
Why did hiring H1B trigger layoffs? I’m American and not a big fan of the abuse of H1B, however I don’t see the correlation here.
Is the Janitor Indian too.. Because that seemed very relevant
The pie is getting smaller. Aldi’s can’t discount AI.
@OP I'm curious, in your opinion how does a leader's country of origin influence business decisions?
The closest reason I can think of is the labor deal they made last year. UPS drivers will earn an average of $170,000 in annual pay and benefits at the end of a five-year contract agreement, UPS CEO Carol Tomé said during an earnings call in 2023. They can’t sustain this big workforce at that pay. Their CEO is an American woman, and she took over in 2020.
Indians always layoff other Indians first 🤡
Unfortunately different here ,He changed legacy UPS rule and hired many H1Bs for full time job and later fired 12k employees.
During the Abney days they gobbled up everything in the logistics world. A lot of those pieces are either integrated fully or have been shed by Tome. There is a ton of redundancy across the departments; tons of contract workers and they are offshoring positions. More to come to as she is reinstating RTO, looks like a move to get some voluntary departure to reduce headcount.
This to me is more scary than the previous tech layoffs. UPS has always been lean, they get more lean every year. This is about their business struggling, which is a warning flag for the economy as a whole. This isn't based on excessive hiring during the pandemic - this is based on package volume being down.
Rich people buy lots of packages, but many of those were tech workers who are now laid off. Makes you wonder how long the layoffs can keep boosting stock prices. At some point the economy will slow if the top end of earners see heavy unemployment
There will be a knowledge/wealth transfer as immigrants return to Asia from the tech industry. The people who are left will transfer to other industries or start their own businesses. The tech industry never needed this many people anyway. Costs of professional services are at an all time high and needs to be brought down to more affordable levels. We also have wars being started by Russia, Iran, China and North Korea on multiple fronts so inflation will stay high for a while
Thanks for specifying the origin of their CTO 🤡
FedEx CEO is Indian. Guess what he's doing?
🤡comment What about Salesforce, Meta, PayPal, Uber, doordash White CEOs are also a menace