UPS stock drops causing the company to cut nearly 12,000 jobs

UPS's shares fell due to job cuts and revenue projections, while hinting at selling its Coyote truck load brokerage operation, which it purchased in 2015 for $1.8 billion.

With the announcement of 12,000 job cuts and a revenue projection for this year, UPS's shares fell precipitously.

Additionally, the organization made a hint about perhaps selling its Coyote truck load brokerage operation. For $1.8 billion, UPS purchased the Chicago-based business in 2015.

The Teamsters put a definitive end to protracted labor talks that threatened to delay package deliveries for millions of homes and businesses across the country in September when they voted to endorse a tentative contract deal with UPS. Pay increases for union full- and part-time employees are part of the contract, which also calls for the creation of 7,500 full-time jobs and the filling of 22,500 unfilled posts, enabling more part-timers to become full-timers.

During a Tuesday morning conference call, CEO Carol Tome stated that UPS will save $1 billion in costs by cutting headcount. The corporation stated that management positions and contractors are expected to lose their jobs.

A 1 cent raise in UPS's quarterly dividend to shareholders of record on February 20 was also authorized by the board, the company announced on Tuesday. According to Tome, UPS is requiring staff members to report back to work five days a week starting this year.

The fourth quarter's revenue fell short as well, falling 7.8% to $24.92 billion. That comes in slightly short of Wall Street estimates of $25.31 billion, according a FactSet survey of analysts.