UPS Announces Organizational Realignment

Rhea-AI Summary

UPS announced the retirements of Juan Perez and Scott Price, effective March 31, 2022. Perez, a 32-year veteran, contributed significantly through initiatives like the Advanced Technology Group and IT modernization. Price led UPS's international expansion and transformation efforts. To streamline operations, UPS will integrate Global Sales and Solutions into its U.S. and International business units. Kate Gutmann has been appointed Executive Vice President and President of International, Healthcare, and Supply Chain Solutions, overseeing units that generated over $37 billion in 2021.

Positive

• Kate Gutmann appointed to manage business units with over $37 billion in revenue.
• Organizational realignment may enhance operational efficiency.
• Continued focus on digital integration suggests ongoing innovation at UPS.

Negative

• Retirement of key executives could lead to uncertainty during transition.

Juan Perez and Scott Price to Retire

ATLANTA, March 01, 2022 (GLOBE NEWSWIRE) -- UPS (NYSE:UPS) announced today that Juan Perez, Executive Vice President and Chief Information and Engineering Officer is retiring after a distinguished career. Scott Price, Executive Vice President International, also is retiring from the company; both are effective March 31, 2022.

“Juan Perez has had a distinguished 32-year career at UPS. His list of accomplishments is long and includes the creation of our Advanced Technology Group, the launch of our smart package initiative, and the deployment of network planning tools that continue to be critical to our success. He also strengthened information security and led the successful digital transformation and modernization of IT at UPS. Scott’s tenure has also been impressive, leading first our transformation office, and more recently the growth and expansion of our international operations. We wish both Juan and Scott all the best in their next chapter,” said Carol B. Tomé, UPS chief executive officer.

“Given these retirements, we have an opportunity to streamline roles and responsibilities to optimize our organizational effectiveness, more fully leverage the talent of our senior leaders and unlock greater value for our customers and our shareowners. As a result, today we are announcing the following organizational realignment, including integrating Global Sales and Solutions into the U.S. and International business units,” said Tomé.

• Kate Gutmann, Chief Sales and Solutions Officer and Executive Vice President UPS Global Healthcare will move to a newly created role of Executive Vice President and President International, Healthcare and Supply Chain Solutions. These combined business units reported revenues of more than $37 billion in 2021. Kate will be responsible for these business units, including their operations and sales teams as well as global solutions and global sales operations. Kate’s current role will be eliminated as she takes on these broader responsibilities.
• Nando Cesarone, Executive Vice President and President U.S., including small package, transportation and the UPS Airline operations, will assume additional responsibility for U.S. sales as well as the company’s automotive, and global buildings and systems engineering groups.
• The company has an external search underway for a new leader for the role of Executive Vice President and Chief Information Officer, continuing UPS’s drive toward deeper digital integration across all our customer and people journeys.

“This realignment positions UPS to continue to do what we do best, and that’s deliver what matters. 2021 was a year of momentum for our company and we are off to a solid start in 2022 with these important organizational changes,” said Tomé.

About UPS
UPS (NYSE: UPS) is one of the world’s largest companies, with 2021 revenue of $97.3 billion, and provides a broad range of integrated logistics solutions for customers in more than 220 countries and territories. Focused on its purpose statement, “Moving our world forward by delivering what matters,” the company’s more than 534,000 employees embrace a strategy that is simply stated and powerfully executed: Customer First. People Led. Innovation Driven. UPS is committed to reducing its impact on the environment and supporting the communities we serve around the world. UPS also takes an unwavering stance in support of diversity, equality, and inclusion. More information can be found at www.ups.com, www.about.ups.com and www.investors.ups.com.

FAQ

What impact do the retirements of Juan Perez and Scott Price have on UPS?

The retirements may create transitional challenges but also provide opportunities for restructuring and optimizing operations.

How much revenue did the combined business units at UPS generate in 2021?

The combined business units reported revenues exceeding $37 billion in 2021.

Who is overseeing UPS's international healthcare and supply chain solutions after the recent changes?

Kate Gutmann has been appointed to oversee the newly integrated International, Healthcare, and Supply Chain Solutions units.

What strategic changes is UPS implementing following the retirements?

UPS plans to streamline roles and integrate Global Sales and Solutions into its U.S. and International business units.

When are the retirements of Juan Perez and Scott Price effective?

The retirements are effective March 31, 2022.