As global demand decreases, UPS needed to “create an even stronger UPS,” spokesperson Matthew O’Connor said in an email.
In spite of the rough macroeconomic conditions, O’Connor remarked, “We are committed to running a highly efficient and resilient business model, especially in the face of choppy macro conditions,” In light of this, they have eliminated several jobs in order to streamline their trade advisory portfolio and provide only the most essential services to their clients.
Revenue fell 5.7% YoY in UPS’ Supply Chain Solutions business last year, which includes services for international trade and brokerage. According to UPS’ annual financial report, divesting UPS Freight and forwarding volume and market rate drops drove this. Due to company expansion and inflation, sector compensation expenditures rose $95 million.
A notification posted on STAAS’ website dated February 27 said that the layoffs were being made due to the incorporation of STTAS’ trade consulting services into UPS’ portfolio. When needed, staff will contact clients to discuss migration arrangements.
UPS bought STTAS 2017. STTAS has 750 trade specialists helping companies comply with global trade standards, according to a news statement. Almost 70% of its staff worked abroad.
“UPS customers tell us they are looking for a full suite of brokerage services, including trade management and advisory services, from a partner that can help them on a global basis,” said then-UPS International President Jim Barber.
