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Thursday, April 18, 2024

UPS is laying off 75 workers in Charlotte

Package delivery giant UPS plans to lay off 75 workers at a night sorting facility in Charlotte, according to a filing with the N.C. Department of Commerce.

The Atlanta-based company said the reason is due to “the lack of available work at this location moving forward.”

The layoffs include 60 part-time hourly employees, 10 part-time management employees, and 5 full-time management employees. UPS says it will attempt to mitigate this loss by offering work to affected employees if other positions become available.

“Our employees are extremely important to us, and we understand the impact this may have on their families,” says spokeswoman Christina Repassy. “We will work with those who may be impacted throughout the process to provide support.”

This closure will affect both union and non-union employees. Union employees are represented by the International Brotherhood of Teamsters. There are bumping rights in effect for union employees.

UPS says it will remain in the facility, located at 1815 W. Pointe Drive, but has no plans to retain day sorting employees beyond May 24. “We often evaluate our operations and flex our network to meet volume demands,” says Repassy. “This allows us to continue delivering industry-leading service while also maintaining competitive prices.”

The company is one of the largest in the world, with $91 billion in revenue in 2023 and approximately 500,000 workers operating in more than 200 countries.

In an earnings conference call in January, CEO Carol Tome told analysts that the company would make major layoffs in 2024.

“Second, we are going to fit our organization to our strategy and align our resources against what’s wildly important,” said said. “This will result in a workforce reduction of approximately 12,000 positions and around $1 billion in cost-out this year. Here, we’ve identified new ways of working and are calling this Fit to Serve.”

Tome said on the call that the small package delivery market, excluding Amazon, would grow by less than 1% in 2024.

There have been three other layoffs, totaling 233 workers, in Mecklenburg County so far this year.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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