7/9/18 - Atlanta - Employees work on finishing the construction of UPS’s southeast ground hub on the west side of Atlanta on Monday, July 9. Jenna Eason / Jenna.Eason@coxinc.com
The company said the buyout initiative will reduce UPS headcount and lower staff expense.
Once the buyout program is completed in the second quarter of 2019, the company expects it to generate annual savings of around $200 million.
UPS announced the voluntary retirement plan in April, offering buyouts to some of its U.S.-based management employees eligible for retirement.
“Obviously, the headquarters is impacted,” along with other locations around the country, UPS chief financial officer Richard Peretz said in an interview. The Sandy Springs headquarters and a large office in Alpharetta “aren’t changing…. [The change] could be who’s sitting in the chair and what they’re doing — more technologists, more artificial intelligence people,” he said.
The company is expanding in other areas, with plans to open a new regional hub in Fulton County on Aug. 6 near Charlie Brown Field.
The company said it will give more details on its long-term strategy at a "transformation conference" in New York in September.