Package delivery giant United Parcel Service Inc (UPC) is reportedly planning to offer voluntary exit packages to some of its management employees. According to sources familiar with the company's plans, the move is part of its strategy to further trim down payroll costs to improve its balance sheets.

The same sources claim that UPS will be offering its buyout packages to select management employees in non-operations roles. Those who will be taking the company's offer will reportedly be leaving in two phases, with the first batch at the end of the year and the second in mid-2021.

UPS had confirmed initial reports, stating that it was indeed planning to offer buyouts. However, the Atlanta-based firm declined to reveal how many jobs it aimed to cut or who was eligible to receive the buyout offers.

"UPS is providing voluntary severance offers to some employees as part of its transformation," UPS confirmed. The company added that it is aiming to align its workforce with the immediate needs of its customers.

By the end of 2019, UPS had nearly 500,000 employees. Around 87,000 of those employees had held management positions. In 2018, UPS had implemented a similar strategy. During that time, the company claimed that it was aiming to generate annual payroll cost savings of about $200 million.  

During the company's earnings call last month, executives announced that they were planning to make the company "better, not bigger" through their new strategy. Apart from cutting its workforce, UPS also stated that it might be eliminating some services that are not performing as expected.

UPS's chief executive officer, Carol Tome, noted during the earnings call that initiatives are going to be put in place to achieve the company's goals. The executive revealed that the initiatives, called "Transformation 2.0 and 3.0," are aimed at improving the company's efficiency and productivity.

Unlike other companies that have implemented job cuts, UPS's business has been booming amid the coronavirus pandemic. Demand for its courier and shipping services surged as consumers were left stuck at home. Travel restrictions also boosted the company's air network.