The world's largest package delivery company said about 1,100 employees will be offered a voluntary separation package as part of the work force reduction.

UPS has 408,000 employees worldwide. About 340,000 of those workers are in the U.S.

There are no plans to close any operating facilities. UPS said the consolidation of offices will not affect the sales and operations team, including drivers. UPS expects to incur a one-time charge in 2010 because of the restructuring.

UPS Inc., based in Atlanta, also said it expects to top its previously announced earnings prediction for the fourth-quarter of 2009. It expects to earn 73 to 75 cents per share, from a previous estimate of 58 to 65 cents per share. UPS will report fourth-quarter earnings on Feb. 2.

"The stronger earnings stem from better-than-expected results in both domestic and international operations and savings through cost management," Chief Financial Officer Kurt Kuehn said in a statement. "However, we still anticipate a gradual economic recovery with improvement more evident as 2010 progresses."

UPS shares rose 4 percent in premarket trading.

Source: Associated Press, Atlanta, January 8, 2010