UPS Uses AI to Lay Off 12,000 Managers and Make Other Radical Changes

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UPS, the package delivery company, has laid off 12,000 managers as part of an effort to make the company more efficient through the use of artificial intelligence (AI). The layoffs represent about 14% of UPS's 85,000 managers.

UPS CEO Carol Tomé explained that AI technologies now allow jobs previously done by managers to be automated, making the laid-off positions redundant. Tomé said the goal of the cuts is to save $1 billion for the company. 

In addition, UPS will now require employees to work in the company offices five days a week, rather than having flexible remote work policies. This is another major change being implemented. 

The layoffs have been difficult for many managers who began their careers as package deliverers at UPS. Revenue and profits declined last year for UPS as shipping volumes fell amid high inflation. 

Time will tell if the job cuts and policy changes help UPS financially or end up causing other unforeseen issues for the business. The company is facing challenges from the economic downturn and needs to adapt to remain competitive.