The United Parcel Service (UPS) is undergoing major job cuts. UPS posted third-quarter results that handily beat Wall Street’s expectations and gave details about its turnaround efforts, including approximately 48,000 job cuts.
The cuts include approximately 34,000 operational roles, such as warehouse and delivery positions, and about 14,000 management and corporate roles. These figures reflect reductions year-to-date through September 2025, totaling around 48,000 positions so far this year, but they may not represent the final total for the entire year.
The company has also ceased daily operations at around 93 facilities during this period as it consolidates its network and streamlines operations.
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UPS executives described the move as the company’s “most significant strategic shift in history,” emphasizing its own corporate perspective. The layoffs are driven by multiple factors, including declining shipping volumes from its largest customer, Amazon, as part of a broader effort to diversify its client base.
UPS is also responding to rising costs in wages, fuel, and operations, prompting a reconfiguration of its delivery network. Automation and digitalization are part of this strategy, with investments aimed at improving efficiency while retraining some employees rather than solely replacing them.
Financially, the restructuring has contributed to short-term improvements. In its third-quarter report, UPS posted $21.42 billion in revenue, slightly below the previous year, while profits exceeded Wall Street expectations, driven largely by cost reductions. The company projects $3.5 billion in annual savings by year-end, and shares rose more than 7% following the announcement.
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The cuts have raised concerns among workers and unions, particularly the International Brotherhood of Teamsters, which represents a large portion of UPS’s U.S. workforce. The timing, just ahead of the holiday shipping season, has led to questions about potential delivery disruptions, although UPS has stated that service levels are expected to remain stable.
Shares rose more than 7% in afternoon trading on Tuesday, and UPS earned $1.31 billion, or $1.55 per share, for the three months ended Sept. 30.
These mass layoffs reflect a broader trend of cost-cutting in logistics and tech-driven sectors, signaling potential softness in the labor market. Mass layoffs across major industries — including tech giant Amazon, retail giant Target, and German airline Lufthansa — have raised fresh concerns about a potential global economic slowdown. For UPS, the ongoing challenge will be balancing profitability and operational efficiency while maintaining service quality and employee morale.