UPS Slashes Jobs

Investment Analysis Clubs Macro Economic Trends and Risks
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Amazon says no to UPS. Costs are too high.
https://www.wsj.com/opinion/ups-layoffs-teamsters-sean-o-brien-labor-unions-69194cfc?mod=hp_opin_pos_3#cxrecs_s
Reality Bites UPS and the Teamsters

The company is laying off workers after its big contract payoff to the union.

UPS shares plunged Thursday 14.1% after it announced workforce and delivery reductions.

It will also cut half of its delivery business with Amazon, its largest customer. UPS’s rising labor costs have made many Amazon deliveries less lucrative and perhaps unprofitable. Amazon will now use its own network to deliver more of its own packages, which it can do at lower cost than UPS because most of its drivers aren’t unionized.

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And with distribution warehouses near most large population centers Amazon can easily deliver their own packages–using contract labor with no benefits. In those situations UPS sorting and transportation adds cost and little value.

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Wait until you see the cost reductions with robo-trucks and an Optimus Prime robot running up to your front door with the package.

If you believe Elon, that’s right around the corner.

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MARTIAN INVADERS !!! ORWELL DID GET IT RIGHT !!!

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