(NEWSnet/AP) – Package delivery company UPS announced it is eliminating about 12,000 jobs and looking at strategic options for its Coyote truck load brokerage business.

Last year, union members at United Parcel Service Inc. voted to approve a tentative contract agreement, after a round of contentious labor negotiations that threatened to disrupt package deliveries.

On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company's headcount, UPS will realize $1 billion in cost savings.

“We are going to fit our organization to our strategy and align our resources against what's wildly important,” Tome said.

She also announced that this year UPS is returning to a policy of having its employees back in the office five days a week.

UPS posted fourth-quarter revenue of $24.92 billion, below analysts' estimates of $25.31 billion and a decline of 7.8% from the prior year. The company's board approved an increase of 1 cent in its quarterly dividend to $1.63 per share, payable March 8 to shareholders of record Feb. 20.

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