Massive UPS Layoffs Due To This… The Economic Ninja

All right, everyone, how do we do this? It’s a little crazy over here. All right. Oh, gosh. Hey, everybody. Economic ninja here. I hope you are doing great. Got a story out of zero hedge. It’s about the UPS mass layoffs that are happening. And the reason why it happened was because it’s actually quite simple. And I’m sure a lot of you understand this. I put out a warning January ago that there were going to start being mass sort of activism, activists rising up in unions saying, we need more money, we need more money.

And they don’t blame the real reason. That’s the government and the Federal Reserve, two different entities that are spending money like crazy, taking the wealth of the nation and causing prices to go up in all kinds of asset classes, especially food. It’s hurting people. And people are so deceived because they were not educated about finance. And there’s a reason for that in high school and in college. So UPS just had some record deal where it was all over the news that drivers were going to be making so much money well into the six figures, and now they just announced massive layoffs.

Because the facts are the facts. Our economy is slowing down. There are less packages. And this goes for any industry right now. There are about to be so many more layoffs in 2024 than 2023. And I want you to be prepared for this. I want you to think about cash flow, different ways of making money right now, side hustles. This is your greatest hour. I don’t want you to be caught in the trap like so many hundreds of thousands, if not of millions of Americans are going to be caught in this trap of getting laid off and not having a job to go to.

You need to start a second means of income. So here’s the story. It says how it started. The most pro union president in history. See, and this is a trap. I swear to you, this is a trap because you know how President Biden, it says right here, applauded teamsters and logistics companies ups last summer for agreeing to a new labor contract that would significantly boost pay. He even crossed the picket line to show his know.

Biden knows exactly what’s going to happen when the unions win this. More money companies are going to lay off, do mass layoffs. He doesn’t care about your job. It’s sad, but it’s also our greatest know. I’m going to diverge a little bit from this, but people need to hear this. I got an email the other day, I wish I had it with me of somebody that started a side business.

They’re in their mid 50s, lost everything at one point, lost their marriage, lost their children, lost their home, and has been rebuilding things and has started a new company having to do with stainless steel. And he’s absolutely crushing it. And he sees the light at the end of the tunnel. He’s going to get back so much more than he lost back in the past. This is our greatest opportunity to crush it.

When you start a business or a side hustle in a bad economy, it is the greatest time because then you’ll just actually explode in a good economy. But look, you’ve got a president that crossed the picket lines. That never happens. It rarely, rarely, rarely ever happens. I don’t think it’s happened in the last like 40 or 50 years. And it’s a deception. All of the employees get all fired up.

Yeah. The president’s for us. The president thinks we should make more money, when really the president and the Federal Reserve, the White House is at fault for what’s going on. We have an explosion in our national debt. And I know you don’t see the inflation yet, but you will. Says here UPS workers approved massive new labor deal. This is back a little while ago, right? And big raises.

This was on August 23. UPS now to cut 12,000 positions announced today. Five months after unionized UPS workers ratified a massive five year labor deal that included massive pay increases. The logistics company announced on Tuesday morning that 12,000 jobs, or about 14% of its 85,000 management jobs, would be cut. We are now well into the double digits. Wait till you see a national unemployment hit 10%. You will see the world change as you know it.

Chief executive officer Carol Tome was quoted on an earnings call by Bloomberg saying that job reductions were due to sliding package demand and soaring union labor costs. She said the layoffs would save the company about $1 billion per year. She says we are going to fit our organization to our strategy and align our resources against what’s wildly important, Tomei said. She said that even after shipping volumes grow, these jobs will not come back.

Think about this. I could guarantee you part of this is going to be AI, she said. Again, I’m going to repeat this, and this is going to be the same story for so many different other companies. Please start preparing right now. A small business. Start small. We need to make America great again by making the middle class rich again. The middle class are being robbed right now through inflation and through layoffs, and it’s going to get worse this next year.

Our country was made great by people again coming over from other countries, like coming through Ellis island and starting businesses. Those small and medium enterprises are what made this country wealthy and secure and an exciting place to live. There’s nothing better than owning owner business and doing well even during the hard times. I’ve had so many entrepreneurs tell me that they would never give it up, that it’s an amazing time.

Now it says again, I’m going to repeat this, she said. Even after shipping volumes grow, these jobs will not come back. It’s a change in the way we work. We also ordered workers to return to the office five days a week. It’s a big deal. Think about all the remote workers. That’s going to be another theme for 2025, remote workers being called back. All right, it’s a big deal.

2023 was a unique and difficult year, and through it all, we remained focused on controlling what we could control, stayed on strategy and strengthened our foundation for future growth, Tome wrote in a statement. Fourth quarter sales and 2024 guidance fell short of average analyst estimates due to higher labor costs and slowing package demand. Isn’t that another theme that we’ve seen all throughout the year last year? Analysts being wrong what do we pay these people for? What do they go to school for? Nothing.

Also, UPS is seeking alternative strategies for its truck brokerage business, which has seen sales plummet amid a freight recession marked by declining rates and overcapacity. Bloomberg pointed out following the labor deal with the International Brotherhood of Teamsters and UPS delivery drivers had some of the richest national contracts ever, according to Teamsters general secretary treasurer Fred Zuckerman. Well, Fred, how do you feel about yourself now? I’m sure you feel good because you’re doing your job for you, but how about all of the people, the thousands of people being laid off right now? Don’t tell me you didn’t look in the mirror and know exactly what was going on.

Thousands of UPS. Hey, let me know down below if you work for UPS. Hashtag it or tell me what’s going on on the front lines. Thousands of UPS drivers are about to find out what the natural end result of unionized, negotiated raises in a free market means for their employment. This is one development the Biden administration will ignore and or will be forced to deflect blame. Let me tell you what else the Biden administration is ignoring, the fact that we are losing hundreds and hundreds, actually millions of full time jobs in this country, and it’s going to add a certain level of stress onto the american people.

This is not good, but I’m going to tell you what, this is the greatest opportunity you’ve ever seen. You’re in the throes of the next great Depression, and that’s a good thing. I know it sounds crazy, but we need a reset. Remember during the dark ages? We had the renaissance come out afterwards? There’s always an awakening that happens and then something new that gives birth. And I can’t be more positive about what’s coming.

Do I know bad things are coming? Absolutely. Do I know that we’re going to all crush it during these times? Absolutely. Do I want to see a million people in America crush it from these hard times? Yes, I do. I actually want to see more. I’m doing my part. The question is, what are you doing? Are you starting businesses? Are you being hopeful, being positive, even though in the face? And that’s real courage.

Trust me. I’m learning a lot about courage lately. Courage is doing what you’re afraid of. It’s making the right decision when everyone’s looking, but also when nobody will ever know what you did. That’s real courage. That’s what our country was built on. It’s time to bring it back. Remember, good times make weak men. Weak men make hard times. And hard times make strong men. Who are you? What do you want? I want the latter.

Everyone. The economic ninja is out. .

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