UPS said it's rejiggering its operating model in a move aimed at taking advantage of its global footprint.
The company shook up its executive roles as part of the new model, naming the head of its U.S. business to lead its global operations, among other appointments.
Under the new approach, set to take effect Sept. 1, UPS said it plans to standardize key operational processes across geographies while remaining flexible to meet the needs of local markets.
"At UPS, we intend to leverage the full power of our global network," Chief Executive Carol Tomé said.
The changes are part of UPS's work to evolve into an integrated logistics solutions provider from a small package carrier, and a key piece of its effort to accelerate profitable growth, the company said. UPS has been wrapping up a years-long restructuring effort that included a rollback of package delivery for some e-commerce companies like Amazon, as well as cutting tens of thousands of delivery-driver and warehouse-worker roles.
Nando Cesarone, president of UPS's U.S. operations, will lead the new model as chief global operations officer, the company said.
Cesarone will oversee areas such as UPS's global air network and gateways, surface transportation, building and engineering operations, automotive operations and sustainability functions, and report directly to Tomé, UPS said.
UPS is also giving Cesarone a retention bonus, with a restricted stock unit award valued at $6 million that will vest in the next few years as part of a retention agreement, according to a filing with the Securities and Exchange Commission. The company entered a similar agreement with Chief Digital and Technology Officer Bala Subramanian with an award valued at $3 million.
The company also named Matt Guffey, its chief commercial and strategy officer, as chief U.S. domestic officer. Guffey will be responsible for the company's U.S. businesses including small package, Roadie, Happy Returns and UPS Stores.
UPS said it is also searching for an executive to take on its newly created role of chief global commercial strategy officer. The position will be responsible for global strategy, marketing and communications, product management and pricing.
The company also disclosed the upcoming retirement of Kate Gutmann, its president, international, healthcare and supply chain solutions, due to personal family reasons. Gutmann, who has been at the company for more than three decades, will remain as an adviser through March 2027, the company said.
UPS veteran Wilfredo Ramos will succeed Gutmann, and report to Tomé. Ramos currently leads UPS's Asia Pacific and brokerage businesses and has worked at the company for more than two decades.