UPS to cut 12,000 jobs 5 months after reaching union deal as revenue outlook for year disappoints

UPS will cut 12,000 jobs and released a revenue outlook for this year that sent its shares down sharply at the opening bell. The company also hinted that its Coyote truck load brokerage business may be put up for sale. Last year union members at UPS voted to approve a tentative contract agreement, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide. On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company’s headcount UPS will realize $1 billion in cost savings. UPS also said it will increase its quarterly dividend by 1 cent.