UPS says it recorded a $68 million charge stemming from an early retirement program.
The package-delivery company had offered 640 employees a special voluntary separation opportunity (SVSO), which was accepted by 195, or 30 percent, of the eligible employees during the first quarter. They all work in nonoperating functions, and the bulk of them were from the U.S. domestic package business.
The charge reflects the cash payout, as well as the acceleration of stock compensation and certain retiree health-care benefits under the SVSO program.
In announcing second-quarter earnings on Friday, Mike Eskew, UPS’s chairman and CEO, conceded, “Strong gains in our international package segment offset a lack of growth in the U.S. business.”