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Friday, January 8, 2010 - 8:05am

UPS Cuts Jobs, Hikes Earnings Projection

UPS says its fourth-quarter earnings forecast will be better-than-expected when released next month. However, the news is tempered with word of thousands of job cuts for the Atlanta-based company.

UPS says earnings for 2009’s fourth-quarter are expected to jump at least 10 cents-per-share, to a range of 73 to 75 cents-per-share.

But in a re-evaluation of its operations, the company says jobs will be cut from its management and administrative departments.

UPS spokeswoman Lisa Hamilton calls the cuts significant.

"We are eliminating about 1,800 positions. 1,100 individuals who are impacted will be offered voluntary severance packages."

The company has about 10,000 employees in the Atlanta-area, but very few of those workers are expected to be affected by the move.

Both UPS and rival Fex-Ex have been navigating a difficult economic environment for their businesses. But UPS officials expect a gradual recovery as the year goes on.

UPS is the world’s largest package delivery company, with 408,000 employees across the globe. More than three-quarters of that workforce is in the U.S.