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UPS To Cut 12,000 Jobs, Invest In AI For Efficiency (bbc.com) 66

Posted by BeauHD from the disappointing-year dept.
sdinfoserv writes: UPS is cutting 12,000 jobs, or about 2.5% of its global workforce. The cuts mostly effect managers and contractors. Meanwhile, as the company wrestles with struggling profits and sales, workers are to return to the office five days a week and the company is "investing in artificial intelligence (AI) as it pushes to become more efficient," according to the BBC. [The job cuts are expected to reduce costs by $1 billion this year.] The BBC reports: The company said that reflected economic weakness in Europe and parts of Asia, as well as disruption in the US, where a strike threatened by staff over the summer led some customers to shift their business to rivals. UPS said it had since won back about 60% of that business and expected modest growth to start to return this year, with average daily volumes flat or up 2% in the US and flat or up 3% internationally. But its forecast was weaker than analysts had expected, sending shares down more than 7%.

It also warned that costs associated with its new contract with the Teamsters union would continue to weigh on the company over the next six months. As part of that deal, the average full-time driver won a pay and benefits package worth about $170,000 a year by the end of the five-year contract in 2028.
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UPS To Cut 12,000 Jobs, Invest In AI For Efficiency More

UPS To Cut 12,000 Jobs, Invest In AI For Efficiency

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  • THEY DID IT!!!!!!! (Score:5, Insightful)

    by Major_Disorder ( 5019363 ) on Tuesday January 30, 2024 @07:31PM (#64202252)
    They found a way to make UPS suck even more than it already does.
    I was not even sure it was possible.
    • Unionized Parcel Smashers

      • Re: (Score:2)

        by jbengt ( 874751 )

        Unionized Parcel Smashers

        Back in the 80s & 90s we used to send and receive plans & specs by UPS, unless the more expensive FedEx overnight was really needed. Until we received a set of backgrounds (transparent mylar architectural drawings for us to draw the mechanical systems on) with a bunch of creases in them and tire tracks on the package.

        • Did they charge extra for the tire tracks?

        • Re: (Score:2)

          by AmiMoJo ( 196126 )

          Why is shipping so bad in the US? It's not just UPS, people complain about FedEx and USPS as well. I dare not buy anything shipped from the US because of the chance of it getting wrecked.

          I'm not expecting Japanese levels of care, but even in the UK the couriers are generally at least somewhat careful not to lob your package or run it over with their van. Why is the US so uniquely bad for this?

          • I think it has to do with the US shipping companies demanding more and more packages moved now now now, with the same or fewer employees.

          • Re:THEY DID IT!!!!!!! (Score:4, Informative)

            by nightflameauto ( 6607976 ) on Wednesday January 31, 2024 @01:09PM (#64203786)

            Why is shipping so bad in the US? It's not just UPS, people complain about FedEx and USPS as well. I dare not buy anything shipped from the US because of the chance of it getting wrecked.

            I'm not expecting Japanese levels of care, but even in the UK the couriers are generally at least somewhat careful not to lob your package or run it over with their van. Why is the US so uniquely bad for this?

            There was a time that they were pretty decent in the US. But these companies started doing efficiency tests, and rather than use those tests as guidelines, they made them hard rules. "Median time per delivery is $x. NO DRIVER SHALL EVER EXCEED $x, NO MATTER THE DELIVERY!" If they do? That's an infraction. And they re-do these tests every few years, making the median time shorter and shorter, to the point some of the guys, even ones who used to stop and chat for a few minutes if we had a big delivery, are so rushed they basically skip out the vehicle, chuck the box, skip back in and hope they can get the seatbelt clicked back in before their timer tells them they failed.

            They also GPS track and keep a watch so if the driver happens to enjoy stopping for a fifteen minute lunch instead of trying to slam a sandwich while driving to the next destination? That's an infraction.

            They've micromanaged the deliver drivers to the point they're constantly feeling threatened. USPS doesn't do this, but I know it's true for UPS and DHL, some areas Fedex does too. It's tough to give a shit when you feel like you're entire day is running as fast as you possibly can, and you still stand a pretty good chance of getting told you're failing at the end of it..

            • I'm in Canada and often have things shipped to me from the US. UPS is *by far* my least favourite shipping option. When I'm given the option, I will always pick an alternative to UPS.

              My issues with them, however, are not damaged or lost packages. The issues are:

              1. Customs brokerage. UPS is the only courier that I've dealt with where I will get a voice message telling me that I need to phone a 1-800 number to "authorize" to bring something through customs for me. When I phone, I speak to a person in broken e

              • I'm in Canada and often have things shipped to me from the US. UPS is *by far* my least favourite shipping option. When I'm given the option, I will always pick an alternative to UPS.

                My issues with them, however, are not damaged or lost packages. The issues are:

                1. Customs brokerage. UPS is the only courier that I've dealt with where I will get a voice message telling me that I need to phone a 1-800 number to "authorize" to bring something through customs for me. When I phone, I speak to a person in broken english after being on hold for 30 minutes and they ask me dumb questions like "is this for business or personal?" When I get the customs bill, I usually see the standard government tax of 13% HST plus a ridiculously inflated "brokerage fee" that goes to UPS. I have had purchases where the purchase price was $100, the government charged me $13 HST on that, and the final customs bill was $50, with that $37 going to UPS as a "fuck you" fee for doing what every single other courier does "for free": I know they must pass this on in the shipping price, but if UPS were actually cheaper than the alternatives I would have an easier time accepting these brokerage fees. FedEX, DHL, USPS typically cost around the same when I'm given an option and yet they don't charge these hidden fees at the border.

                2. Inconsistent service. After years of bitching about the above, UPS has started to send emails with an option to pay custom fees online. This is wonderful, when it happens. It seems like I'm playing the lottery with UPS now. Sometimes I get this. Other times I have to phone the stupid 1-800 number.

                3. Inaccurate delivery estimates. When I order something using USPS or FedEX, the delivery estimates are usually pretty accurate. With UPS I can *ALWAYS* expect tracking updates saying it was delayed. Other companies seem to have figured out how to get this right, with the occasional understandable miscalculation due to an unforeseen severe weather event etc. Why does UPS suck in comparison?

                4. Sparse tracking information. I don't think I need to elaborate too much on this, just that compared to other couriers, when I'm tracking a package with UPS I seem to get far fewer updates. In fairness to UPS this *could* just be due to having fewer scan points, but it still creates the perception that you're getting a shittier service when you need to wait days between any tracking updates.. and then all you're getting is the city it's in (which is certainly better than nothing ... but with FedEX you get really detailed updates like where the package is in terms of its processing through a given facility etc.).

                5. Slower delivery. I'm sure this is outside of UPS's control. But there is one online store in the USA that I buy from regularly and they only ship UPS so I get to experience the headache of dealing with UPS a lot. I used to be able to get things shipped in 1 - 2 business days with UPS as an option. Lately the shipping charges have been going way up while the delivery times have gotten worse. Since I don't ship with the alternatives frequently enough I can't say if this is UPS specific or not. But it's annoying to feel like you're paying more for less.

                None of the above have anything to do with the delivery drivers. The issues with UPS seem endemic to the broader organization.

                No doubt. I guess I was describing a symptom of horrible management. You've described several more.

          • Why is shipping so bad in the US? It's not just UPS, people complain about FedEx and USPS as well. I dare not buy anything shipped from the US because of the chance of it getting wrecked.

            I think it all depends on where you live. People in larger population centers probably have worse luck with deliveries because the drivers are more overworked. I have a friend in Chicago who regularly has deliveries skipped due to him "not at home", even though he has video evidence that no one even stopped to ring his door

          • Lob your packages? Like the typical lazy Amazon driver that I used to catch on my surveillance cameras?

            My regular local USPS driver is MUCH MORE careful with my packages ... and I did not have to pay him to be nice or careful either!

    • Well, they could merge with Boeing.

    • Re:THEY DID IT!!!!!!! (Score:4, Insightful)

      by sinkskinkshrieks ( 6952954 ) on Wednesday January 31, 2024 @02:47AM (#64202888)
      So now when you call customer service, some AI chatbot will waste your time and go around in circles without there being a way to talk to any human. You'll now be able to scream "agent" until you have a stroke, and the chat bot will only chastise you for tone and language instead of actually helping you. Welcome to the future!

      • So now when you call customer service, some AI chatbot will waste your time and go around in circles without there being a way to talk to any human. You'll now be able to scream "agent" until you have a stroke, and the chat bot will only chastise you for tone and language instead of actually helping you. Welcome to the future!

        Aside from shoving AI in there, it's been that way for the delivery services in my area for decades.

    • The German utterance when you drop something is more often than not "ups" (akin to the English "oops!").

  • drivers don't need managers telling them how to dr (Score:5, Insightful)

    by Joe_Dragon ( 2206452 ) on Tuesday January 30, 2024 @07:40PM (#64202280)

    drivers don't need managers telling them how to drive

  • Exactly how does UPS plan to use "AI"? Do they really think that they're going to have self-driving trucks with ride-along bots that can carry packages to someone's door, and then ring the bell?

    • Re:AI is the new corporate pixie dust? (Score:5, Informative)

      by Tablizer ( 95088 ) on Tuesday January 30, 2024 @08:43PM (#64202420) Journal

      That's a standard talking point of co's announcing cutbacks. "But we're investing in AI" is to keep investors interested, or at least distracted from their loserhood.

      I'm sure there's a PHB Labs somewhere working on SynergyGPT.

    • Re: (Score:2)

      by AvitarX ( 172628 )

      I bet self driving trucks could get 10% more deliveries/person in dense areas.

      Park at corner, walk down block dropping packages, meet truck at next corner.

      Similarly with drop off driver meet at parking spot (seems more dubious though traffic flow wise).

      I don't think this is where they'll do it, I assume this is better predictions of logistics with less humans analyzing, but self driving would make a significant impact on the number of drivers they need.

    • Exactly how does UPS plan to use "AI"?

      AI is just an excuse that's vogue among C-Staff that the press has mostly given the various corporations a free pass on (because it was just inevitable). UPS and all these other companies just wanted to fire people for profit. USPS has been eating UPS lunch and UPS is looking to cut overhead for a half decade or so to revamp contracts and logistic chains while still handing over a mighty profit on paper to shareholders.

      There is literally no AI involved. I don't how to break this to anyone but, they just

    • As I said in a story response yesterday, AI is finally good enough to replace middle managers. And the story says this is mostly about management. You know it's not going to be C-Suites, yet. Nope. It'll take another iteration of two before the AIs can create that big a cloud of bullshit.

  • but I was laughing so hard reading the thread so far, I forgot what truly hilarious and dryly sarcastic thing I thought was so important to memorialize at this august , um.. publication?

    so, Good Job slashdotters, best read today.

  • At the same time, they increased their stock dividend. So they can't afford to keep people and pay them, but they can afford to give away money to stockholders? Yes, it isn't the same amount, but if you need to cut jobs to save money, you shouldn't be giving it away to stockholders.

    • I don't know UPS's shareholder situation but in general dividends are given to keep investor interest so the stock doesn't flatline.

      A utility business like package delivery isn't very exciting so shareholders need another reason to buy and hold.

    • At the same time, they increased their stock dividend. So they can't afford to keep people and pay them, but they can afford to give away money to stockholders? Yes, it isn't the same amount, but if you need to cut jobs to save money, you shouldn't be giving it away to stockholders.

      Business 101, lesson 437: When in doubt, sack employees and announce increased profits for the quarter, resulting in dividends so the stock holders cheer and wave. God damn, unrestrained and unregulated capitalism is beautiful.

  • to cut workers, to prop up the profits.
  • They're losing money only making right turns.

  • How it started: UPS drivers to make $170,000 in pay and benefits following Union deal

    How it’s going: UPS to slash 12,000 jobs after increased labor costs

    They knew how the '70s UAW and steel union deals eventually unfolded for those industries. Much of the work was offshored. Automation is just another type of offshoring.

    • Re: (Score:2)

      by aergern ( 127031 )

      Because a $170k is SO much money after most of the middle class has gotten shafted since the Reagan era. Yeah, sure. SMFH.

  • Suppose a business were constructed with no human management and was only reachable by phone, email, or by mail through a slot that OCR'ed all incoming correspondence. It would have to be constrained by legal requirements, but there would be no ego, morality, or ethics except profit maximization. I think it is now attainable to have a fully autonomous corporation. The difficulty would be in hiring and measuring human output before it was replaced by a very small script.
    • 2/ The future of humanity is a decatrillionaire owner of the Wallace Corporation while almost everyone else lives in caves.

    • Corporations have always been intelligence without conscience. Everyone in a corporation has someone to put the blame on, to point to and to claim that he made me do it, and if I didn't, they just would have replaced me with someone else.

      That's not new.

  • Yet UPS had $2.5 billion profit (Score:3)

    by bsdetector101 ( 6345122 ) on Wednesday January 31, 2024 @07:24AM (#64203134)
    Yet UPS had $2.5 billion profit, The cuts mostly affect managers and contractors....so no big loss there. The Unionized drivers will NOT be affected by this cut, so deliveries will not be affected. All info from another article. I worked at one company where they made cuts, as long as you were considered "hands on" with out product, you were job safe. All fluff jobs got cut.
    • were considered "hands on" with product. !! Correction..half asleep.
    • The interesting thing about UPS managers, as I have a sibling who was one until her job nearly killed her, is that they're paid for 40 hours and never, ever, work less than about 70. It's got to be one of the most toxic work environments that could possibly exist.
      • One reason I turned down being a salaried boss. Saw too many at Merial get burned out and you end up making less $$$ cause you aren't paid overtime !!
        • All these years later having written code for approaching 40 years now, I realize ... I should have been a UPS driver.

  • They just misdelivered someone else's package to us yesterday. Now they're going to use more AI for what, hallucinating more addresses?

    • Uh maybe they will use AI to try to prevent misdelivering packages!

      • Uh maybe they will use AI to try to prevent misdelivering packages!

        Unless the AI is driving the truck and putting the packages on porches it won't help. And even then it wouldn't help, it would just lead to new and different comic forms of failure.

        • Why? If certain addresses are problematic, they can be flagged. Most delivery drivers can't deliver a package without being GPS-located to within a small radius of the target location. The boundaries could be made tighter as one possibility. Amazon takes a picture of the delivery. AI could analyze those images to see if the delivery is in the right place based on whether it looks like the location of a previous delivery. There might be other things that can be done. But trying to reduce mis-delivery

          • It's not a problematic address. It's just a dumb shit driver. I live in town and the house is well marked.

            • The AI should be able to figure that out. Of course, arguably, they should be able to figure that out without the AI. But that's a separate discussion. The fact is that they haven't figure it out and the AI might. I still don't see why you wouldn't be happy about that.

              • I would be happy if it helped.

                It won't, because it won't replace the part that fails, the human. It will just replace some other programs and it will do a better job sometimes and a worse job other times, which makes it worse than what it replaces because it will be unpredictable.

  • On the rare occasions when I am forced to actually call UPS, inevitably I end up having to talk to a moron who can only tell me what I already see on my screen, once I get past the IVRs and chatbots. So, if they replace it all with AI, nothing changes.

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