Quiver Quantitative - United Parcel Service (NYSE:UPS) is set to undergo significant changes in its executive structure as Kevin Warren, the company’s Chief Marketing and Customer Experience Officer, prepares to depart at the end of the year. In a strategic shift, UPS has announced the elimination of the CMO role, redistributing these responsibilities within the organization. Matt Guffey, previously President of UPS Global Strategy and Transformation, will ascend to the role of Chief Commercial and Strategy Officer, absorbing the marketing functions along with overseeing global revenue, product management, and strategy.
This reshuffling at UPS comes amidst a challenging economic landscape, highlighted by the company’s recent reduction in sales outlook after experiencing a 13% revenue decline in Q3. CEO Carol Tomé attributed this downturn to factors like reduced online sales, reflecting broader macroeconomic challenges. This development is particularly noteworthy given the context of the parcel delivery industry, where Amazon (NASDAQ:AMZN) has recently overtaken UPS and FedEx (NYSE:FDX) in terms of parcel volumes in the U.S., with projections to deliver 5.9 billion packages by the end of the year.
Kevin Warren’s departure marks the end of a four-year tenure at UPS, which began after his 33-year career at Xerox (NASDAQ:XRX). His contributions to UPS include enhancing customer experience and developing digital platforms, key areas in the company's strategy. Warren's role in these initiatives has been acknowledged by CEO Tomé, emphasizing his impact on the company's operational and customer service improvements.
As UPS navigates through these leadership and operational changes, the focus will be on how the company adapts its strategy to remain competitive in the evolving logistics and delivery landscape, particularly in the face of growing challenges from e-commerce giants like Amazon.
This article was originally published on Quiver Quantitative