ThyssenKrupp Steel Europe, facing intense competition from cheaper Asian imports, plans to cut its workforce by over 11,000 by 2030, reducing it from 27,000 to 16,000. This restructuring includes 5,000 job cuts through production and administrative adjustments, and another 6,000 through outsourcing or business sales. To combat overcapacity, production capacity will be reduced from 11.5 million to 8.7-9 million metric tons. While the company aims for voluntary departures, the plan has been met with strong opposition from labor unions.
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UPS announces 12,000 job cuts, saying that package volume slipped last quarter. This news is disheartening, but not entirely surprising given the changing landscape of the shipping industry. As someone who ships around 100 packages a week, I’ve observed a shift in the market. It used to be a 90/10 split between UPS and USPS, but now it’s more of a 10/90 split due to USPS’s Ground Advantage service, which offers lower prices. This has undoubtedly impacted UPS’s market share.
The rise of e-commerce giant Amazon has also played a role in UPS’s struggles. A few years ago, UPS took a stand and told Amazon to either accept their rates or develop their own shipping program.… Continue reading
John Q. Hosedrinker