United Parcel Service has slashed 48,000 jobs this year — one of the largest single-year reductions by a US company since the pandemic — as the package giant scrambled to contain costs and revive its lagging stock price.
The Atlanta-based delivery behemoth disclosed the reductions Tuesday while reporting third-quarter earnings that beat Wall Street expectations.
UPS said 34,000 of the cuts hit drivers and warehouse operations, while 14,000 targeted management.
The company employed about half a million people at the start of the year, the New York Times noted.
Chief Executive Carol Tomé said the job losses, a mix of layoffs and buyouts, were part of a restructuring aimed at positioning UPS to be at “the most efficient peak in our history.”
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” she said in a statement.
UPS shares jumped nearly 9% in Tuesday afternoon trading, even as the company reported weaker revenue and profits.
The shipping giant earned $1.3 billion in the third quarter, down from $1.5 billion a year earlier, on revenue of $21.4 billion — a 3.7% decline from last year.
Tomé, the first outsider to lead UPS, has faced mounting pressure from investors and employees frustrated by years of underperformance compared with rivals FedEx and Amazon’s growing logistics arm.
UPS stock has slumped more than 25% since early 2023.
This year’s sweeping cuts were far larger than previously disclosed.
UPS said in April it planned to eliminate about 20,000 operational jobs. Last year, the company announced 12,000 management cuts. Tuesday’s filing confirmed that both targets were exceeded.
“We keep finding opportunities for us to bring costs down,” Tomé said on a call with analysts.
The restructuring has already generated $2.2 billion in savings this year through automation, facility closures and reduced seasonal hiring, according to UPS.
The company will run this year’s holiday shipping season with “less variable capacity, fewer leased aircraft, fewer rented vehicles, fewer seasonal workers,” said Chief Financial Officer Brian Dykes.
UPS has closed 93 buildings so far this year and expects to shutter more before the end of 2025, the company stated.
Its shift toward efficiency also includes reducing dependence on Amazon, its onetime largest customer. Package volumes from Amazon were down more than 21% in the third quarter as UPS deliberately scaled back lower-margin business.
Tomé said that trend would continue.
The cost-cutting drive has stirred tension with the International Brotherhood of Teamsters, which represents roughly 340,000 UPS workers.
The union warned earlier this year it would challenge any layoffs that violate its collective-bargaining agreement.
On Tuesday, Tomé said the company remained “in compliance with the terms of our contract.”
The Teamsters did not immediately respond to requests for comment.
UPS said its business has been hit by geopolitical headwinds, including new tariffs that helped drive a nearly 30% drop in package volume from China to the US during the third quarter.
UPS said it expects full-year revenue of about $89 billion, roughly flat from 2024, and plans to continue trimming its physical footprint through next year.
The company’s latest overhaul follows a string of major corporate downsizings across the logistics and tech sectors, including 14,000 corporate layoffs at Amazon and FedEx’s plan to consolidate air operations.
The cuts at UPS mark the deepest cuts in its 117-year history.
