The Atlanta-based logistics giant disclosed the job losses on Tuesday as it reported third-quarter results that exceeded Wall Street expectations, even as revenue and profit continued to slide. UPS said the workforce reduction — a mix of layoffs and buyouts — included 34,000 operational roles in driving and warehouse operations and 14,000 management positions.
The company, which employed about 500,000 people at the start of 2025, described the overhaul as the most significant transformation in its history.
A Bid to Restore Investor Confidence
Chief Executive Carol Tomé, who became the first outsider to lead UPS in its 117-year history, framed the restructuring as a necessary step to restore competitiveness and investor confidence.
“We are executing the most significant strategic shift in our company’s history,” Tomé said in a statement. “The changes we are implementing are designed to deliver long-term value for all stakeholders.”
The announcement sent UPS shares soaring nearly 9% in afternoon trading, a rare boost for a stock that has fallen more than 25% since early 2023 amid investor frustration over sluggish growth and competition from FedEx and Amazon’s expanding logistics network.
Despite stronger-than-expected earnings, UPS reported a 3.7% drop in revenue to $21.4 billion for the third quarter, with profits slipping to $1.3 billion from $1.5 billion a year earlier.
Deeper Cuts Than Expected
Tuesday’s disclosure revealed that this year’s cuts were far more extensive than initially announced. In April, UPS said it would eliminate about 20,000 operational jobs, while another 12,000 management roles were slated for removal last year. The company has now confirmed it surpassed both targets.
“We keep finding opportunities for us to bring costs down,” Tomé told analysts during an earnings call.
According to Chief Financial Officer Brian Dykes, the restructuring has generated $2.2 billion in savings so far through automation, facility closures, and reductions in seasonal hiring. UPS has already shuttered 93 buildings this year and plans to close more before the end of 2025.
This year’s holiday season, typically UPS’s busiest period, will be managed with “less variable capacity, fewer leased aircraft, fewer rented vehicles, and fewer seasonal workers,” Dykes added.
Tensions With Labor and Shifting Customer Mix
The aggressive cost-cutting has put UPS at odds with the International Brotherhood of Teamsters, which represents roughly 340,000 UPS workers. The union has cautioned that it will challenge any layoffs violating its collective-bargaining agreement.
Tomé insisted the company’s actions comply with labor terms, saying UPS remains “in compliance with the terms of our contract.” The Teamsters did not immediately respond to requests for comment.
Part of the restructuring also involves reducing UPS’s reliance on Amazon, once its largest single customer. Package volumes from Amazon dropped more than 21% in the third quarter as UPS deliberately scaled back lower-margin contracts. Tomé confirmed that the company plans to continue that trend to focus on higher-profit business.
External Pressures and Industry Shifts
UPS said its performance has been hampered by broader economic challenges, including new tariffs and weakened trade flows from Asia. The company recorded a 30% decline in package volume from China to the United States during the third quarter.
Full-year revenue is expected to hover around $89 billion, roughly flat from 2024, as UPS continues to streamline operations through 2026.
The company’s sweeping overhaul mirrors similar downsizing efforts across the logistics and technology sectors. Amazon has cut about 14,000 corporate roles, while FedEx is consolidating its air network as part of its own cost reduction initiative.
For UPS, however, the current wave of restructuring marks the deepest job cuts in its 117-year history — a defining move for a company seeking to reinvent itself in a rapidly evolving global delivery landscape.