After Amazon and Target, logistics giant United Parcel Service (UPS) announced that in the first nine months of 2025, it had eliminated around 48,000 jobs as part of its cost-cutting initiative. Most of these layoffs affected truck drivers and warehouse workers in the US, however, approximately 14,000 management and corporate employees were also asked to resign.
UPS cuts 48,000 jobs in major overhaul
UPS’ mass layoffs come amid the company’s effort to improve profits and regain investor confidence. The Atlanta-based delivery giant confirmed the number on Tuesday while announcing its third-quarter results, which exceeded Wall Street expectations.
UPS began the year with nearly half a million employees. According to the NYT, 34,000 positions were cut this year, mostly among drivers and warehouse workers in the United States. The remaining 14,000 job losses came from management, part of the layoffs that started last year.
Stock jumps as UPS promises profit
According to a report from the Associated Press, UPS’s stock jumped 7% on Tuesday, moments after the announcement. The company for months has been under pressure to deliver higher returns, as its stock price has lagged behind market gains for much of the year.
“We are executing the most significant strategic shift in our company’s history,” CEO Carol Tomé said in a statement. “The changes we are implementing are designed to deliver long-term value for all stakeholders.”
Despite the job reductions, UPS registered a net income of $1.3 billion for the third quarter, slightly lower than $1.5 billion during the same period last year. Revenue was recorded at $21.4 billion, compared with $22.2 billion a year ago.
Even with lower profits, the company showed positive operational developments, particularly a 10% increase in revenue per package in the US market. Tomé told analysts that the focus now is on working on efficiency and reducing expenses across the network.
According to a regulatory filing, UPS has closed operations at 93 leased and owned buildings so far this year. The company said more closures could follow, AP reported. On Tuesday, Tomé stressed that all cuts were made “in compliance with the terms of our contract.”
Tariffs, Amazon, and changing strategy
UPS’s operations have taken a direct hit because of global trade policies. The volume of packages from China dropped nearly 30% in the third quarter, after the US government imposed new tariffs earlier this year, the NYT reported.
At the same time, UPS is also reviewing its relationship with Amazon, its biggest customer. Earlier this year, the company announced a deal to reduce its Amazon delivery volume by more than 50% by 2026, citing lower profitability.
UPS has already achieved about $2.2 billion in cost savings as of September 30 and expects to reach $3.5 billion by 2025. Even with Tuesday’s announcement, UPS shares remain down by nearly 25% this year. Competitors like FedEx have dropped 11%, while the S&P 500 is up 17%.
