UPS says 194 employees take buyout

UPS says 194 employees take buyout

	Published : Wed, 28 Feb 2007 23:00 By : Agencies Print this Story

ATLANTA (AP) - UPS Inc., the world's largest shipping carrier, said Wednesday that less than one-third of the employees it offered severance packages to in December had accepted the buyouts.

Spokesman Norman Black said it was too early to tell whether there would be layoffs to account for any more jobs the company hopes to cut.

'It absolutely does not mean that at this point,' Black said when asked if there would be layoffs.

He said the company could possibly make up the extra jobs it may hope to cut through attrition.

The Atlanta-based company had said it offered voluntary severance packages to roughly 650 employees at its headquarters and in its Supply Chain Solutions division in the United States. On Wednesday, it said the offer was accepted by 194 employees. The company did not disclose how much the employees would receive.

Those who received the severance offers are at least 50 years old and have at least 10 years of experience. Normal retirement age at UPS is 65.

The jobs UPS said it wanted to cut were in addition to 1,200 positions being cut in its logistics unit.

At the time of the December announcement, the company did not disclose a goal of how many people it hoped would take the severance offers, and it did not say at the time if there would be any forced layoffs if not enough people took the offers.

The personal election period ended Jan. 29.

UPS, also known as United Parcel Service Inc., said Wednesday that it will record a one-time charge to expense of roughly $80 million during the first quarter of this year. The company said it expects to generate a positive return on the program after two years.

The buyout offer was part of an ongoing effort to consolidate corporate support functions in such areas as network planning, procurement, human resources, finance and sales. UPS has been undergoing a restructuring meant to reduce costs and align transportation services and planning across the company.

Chief Executive Mike Eskew said at an investor conference last year that the company is confident its growth strategy is working amid competitive and economic challenges.