UPS Cuts 48,000 Jobs, Shuts 93 Facilities In 2025 Cost-Saving Drive

• The company said it reduced about 14,000 positions, primarily within management, and reduced the operational workforce by approximately 34,000.
• UPS said that as of September 30, it has realized about $2.2 billion in cost savings and expects to achieve $3.5 billion in total year-over-year cost savings in 2025.
• The company forecast fourth-quarter revenue of about $24 billion, compared with Wall Street estimates of $23.82 billion.

UPS said on Tuesday that the company has reduced its workforce by 48,000 positions and closed daily operations at 93 leased and owned buildings during the first nine months of 2025 as part of its cost-cutting initiative.

The company stated it reduced about 14,000 positions, primarily within management and reduced the operational workforce by approximately 34,000.

UPS said that as of September 30, it has realized cost savings of about $2.2 billion, and expects to achieve $3.5 billion total year-over-year cost savings in 2025 from this initiative.

Transformation 2.0

The company calls its overhauling process “Transformation 2.0” and said it had identified opportunities to reduce spans and layers of management. The job cuts follow a review of its business portfolio and the identification of opportunities to invest in certain technologies to reduce global indirect operating costs.

As part of its cost-cutting initiatives, UPS said it expects to exclude between $400 million and $650 million in adjusted expenses in 2025, primarily related to third-party consulting fees, employee separation benefits, and certain programmatic expenses.

The company said that as of September 30, it has incurred program costs to date of $422 million, including $387 million year to date. “We expect the costs associated with these actions may increase should we determine to close additional buildings. These initiatives are expected to conclude in 2027,” UPS said in a filing.

Q3 Results Boost Shares

Shares of UPS jumped nearly 8% in early trading after the firm forecast fourth-quarter revenue of about $24 billion, compared with Wall Street estimates of $23.82 billion.

The company reported third-quarter consolidated revenue of $21.4 billion, compared with Wall Street expectations of $20.84 billion, according to Koyfin. Its adjusted earnings per share came in at $1.74, beating estimates of $1.30.

The parcel services company reported third-quarter consolidated revenue of $21.4 billion, compared with Wall Street expectations of $20.84 billion, according to Koyfin. The adjusted earnings per share came in at $1.74, beating estimates of $1.30.

UPS executives said on a post-earnings call that the total U.S. average daily volume was down 12.3%, primarily due to the decline in Amazon volume and focus on improving revenue quality. Total air average daily volume was down 13.9%, mainly due to Amazon, as it continues with planned reductions in Amazon packages.

Retail sentiment on UPS jumped to ‘extremely bullish’ from ‘bearish’ territory compared to a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

Shares of UPS have declined nearly 29% in the last 12 months. 

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Also See: Adobe CEO Defends Software’s Role In AI Race, Calls Company ‘Undervalued’: Report

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