What You Need to Know Ahead of UPS Earnings Tuesday [Video]

United Parcel Service (UPS) reports earnings before the bell Tuesday, with analysts projecting year-over-year drops in revenue and income as UPS and FedEx (FDX) have seen demand fall after hitting record highs during the pandemic.

The shipping giant has also seen its margins hit by the implementation of the contract it reached last summer to avoid a strike of 330,000 UPS employees, and the company has also introduced cost-cutting efforts as it copes with the lower demand.

Bank of America analysts said in a recent note that UPS focused on cost-cutting efforts during an analyst event that took place last month. The company highlighted its plan to cut $3 billion in costs with changes to its business model including more automation in its warehouses, and another $1 billion in cuts that would be achieved through layoffs of about 12,000 employees in management roles.

“By 2028, UPS aims to more than triple its buildings with …