“So it's a $1 billion of cost out now, but there's even more cost out to come as we have a full-year benefit in 2025.”

In context

“system, we don't expect these jobs to come back. It's changing the effective way that we operate. Carol Tome: And I might just add a little more color, if I could, Chris. Today we have about 495,000 UPSers around the world. A few years ago, when the COVID demand was peaking, we had 540,000 UPSers. So Kate and Nando have done a masterful job of managing our operational headcount to meet the volume in our company. And they've done that by managing turnover and attrition and closing sorts and reducing block hours, et cetera. We have about 85,000 UPSers who are management, and this can be full-time and part-time management. The targeted headcount falls really within that group as well as some contractors that will be leaving us. And to Brian's point, this is really about a new way of working. So it's a $1 billion of cost out now, but there's even more cost out to come as we have a full-year benefit in 2025. Chris Wetherbee: Thank you. Operator: Our next question will come from the line of David Vernon of Bernstein. Please go ahead. David Vernon: Hey, good morning, guys, and thanks for taking the question. So, just wanted to ask, on the productivity side, obviously hours down more than volume. We've had a couple of quarters of that, obviously not the third quarter this year. Is there a point where volume declines are become more difficult to offset? I'm just trying to understand the downside risk, right, if volumes continue to remain flat or weaker than you expect, how should we be thinking about the downside risk on the margin side? Carol Tome: So we believe that productivity is a virtuous cycle here at UPS. And I'll give you one example, then I'm going to throw it over to Nando to address t”