Jan. 30 (UPI) -- After falling short of Wall Street revenue estimates Tuesday, UPS said it will cut 12,000 jobs.
The move comes as shipping volume has fallen both domestically and internationally, according to the company and as reported by CNBC. CEO Carol Tomé said the layoffs will save the company $1 billion.
Depressed shipping numbers have led to a reduced sales outlook for the year, UPS said, adding that the company forecasts global revenue of between $92 billion to $94.5 billion, according to CNN.
In a press release Tuesday, the company said, it is planning capital expenditures of "about $4.5 billion and dividend payments of around $5.4 billion," with approval of its board.
"2023 was a unique and difficult year and though it all we remained focused on controlling what we could control, strayed on strategy and strengthened our foundation for future growth," said UPS CEO Carol Tome in the release.
Tuesday's announcement comes after UPS workers averted a strike this past year when drivers and package sorters overwhelmingly approved a five-year contract in August.
The 340,000 Teamster rank-and-file members approved the deal by 86.3%, the largest margin ever for a contract at UPS.