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The Markets February 3, 2009
UPS Joins 401(k) Match Suspension List
UPS has become the latest employer to pull back on its 401(k) match.
Reported by Fred Schneyer
The package delivery service reported fourth-quarter net income of $254 million, or $0.25, compared with $2.64 billion—a loss of $2.52 a share a year earlier.
In addition to the 401(k) match suspension, Chairman and CEO Scott Davis said in a statement that UPS has consolidated operating districts, reduced air segments, and eliminated some package handling operations. UPS it is not changing its defined benefit plans.
“The severe decline in economic activity around the world resulted in sharply lower package and freight volumes for UPS,” said Davis, in the statement. “Consequently, we’re making the tough decisions necessary to adapt our enterprise to today’s realities. This includes changes in organizational structure, compensation, and network configuration.”