UPS has announced 12,000 layoffs in the wake of its revenue being lower than projected.

The shipping company’s revenue decreased by 7.8%, going from $27 billion to $24.9 billion in the course of a year; shipping using UPS also went down by a noticeable amount, dipping by 7.4% in North America and 8.3% internationally. As such, the company has announced layoffs, which its CEO says will help save the company $1 billion in costs.

“2023 was a unique, and quite candidly, difficult and disappointing year,” UPS CEO Carol Tome said. “We experienced declines in volume, revenue and operating profits and all three of our business segments.”

The announcement of the layoffs comes several months after the company announced it planned to hire 100,000 seasonal workers in preparation for the holiday rush. The intended plan to hire more employees came after a negotiated deal allowed UPS workers to accept a five-year tentative contract to increase wages.

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Mass layoffs have become a growing phenomenon in the past few months, with several major companies, especially in Big Tech, laying off hundreds of people simultaneously. Among these tech companies include Google, Amazon, and Discord.

Other recent layoff actions include Macy’s decision earlier this month to fire 2,350 of its employees, equating to about 3.5% of its total employment. In December, music platform Spotify announced it would lay off approximately 1,500 of its employees, or around 17% of its employment.