UPS to lay off about 12,000 employees due to decline in revenue

(NBC, KYMA/KECY) - UPS says major layoffs are on the way as the company released a statement on Tuesday, saying it would cut about 12,000 employees due to a decine in revenue combined with rising labor costs.

UPS says it saw a $9 billion decline in year-over-year revenues. Also, the company agreed to a $30 billion contract with the Teamsters Union last July.

Those 12,000 jobs is about 2.4% of the company's 500,000 global workforce. Employees affected will receive severance packages and outplacement assistance.

On an earnings call Tuesday, the logistics giant said it was looking to cut $1 billion in costs in the fourth quarter. UPS did report report revenues of $24.92 billion, which was below forecasts. The news pushed shares down more than 6% in Tuesday trading.