Jan 30 Reuters United Parcel Service plans to cut 12,000 jobs and explore strategic options for Coyote, its volatile trucking brokerage business, after the world39;s largest parcel delivery company forecast fullyear revenue below Wall Street39;s target.

Shares of Atlantabased UPS tumbled 8 to 145.32 on the New York Stock Exchange amid weak demand from its retail, manufacturing and high tech customers.

The company plans to cut 1 billion in costs as it comes off a difficult and disappointing year, when volume, revenue and operating profit declined in all of its business segments, UPS CEO Carol Tome said on a conference call with analysts.

Tome also said UPS hopes to find a new way to offer the very lowmargin services that Coyote provides without the overhead. Coyote39;s revenue topped 4 billion during the height of the COVID19 pandemic shipping boom, but it39;s come way down since then, she said.

UPS, seen as a bellwether for the global economy, does not expect business conditions to improve until the second half of 2024. On Tuesday, it forecast fullyear revenue of 92 billion to 94.5 billion, below analysts39; average target of 95.57 billion, according to LSEG data.

UPS, FedEx and other delivery firms boomed in the early days of the pandemic, when homebound consumers binged on everything from furniture and exercise equipment to sweat pants and televisions.

That trend reversed when travel, concerts and indoor dining resumed, and the resulting drop was exacerbated by…