United Parcel Service (UPS) announced on Tuesday that it has cut 34,000 jobs this year as part of its ongoing cost-reduction and turnaround strategy — marking a 70% increase from its earlier layoff target of 20,000 roles announced in April.
The job cuts primarily affected permanent operational staff, including drivers and package handlers, the company said.
Cost-Cutting Measures
Besides layoffs, UPS has implemented several structural changes to streamline operations and lower costs. The company has shut down daily operations at 93 leased and owned facilities during the first nine months of 2025 — exceeding its own target of 73 closures by June.
UPS is also reducing its exposure to low-margin Amazon shipments and exploring further automation to replace manual labor. The company said it plans to close additional locations and exit less-profitable segments, particularly low-value e-commerce deliveries.
Chief Market Strategist Matt Maley of Miller Tabak called the measures “exactly what UPS needed” to strengthen its financial performance.
Q3 Financial Performance
For the quarter ended September 30, UPS reported a net profit of $1.31 billion, or $1.55 per share, down from $1.99 billion (or $1.80 per share) in the same period last year. Excluding one-time costs, adjusted earnings came in at $1.74 per share, well above Wall Street expectations of $1.31 per share, according to Zacks Investment Research.
Revenue rose to $21.42 billion, exceeding analysts’ forecast of $20.84 billion, signaling that CEO Carol Tomé’s turnaround strategy is beginning to yield results despite weak global demand and trade disruptions.
The company projects fourth-quarter revenue of about $24 billion, slightly ahead of market expectations.
UPS said its cost-cutting efforts, including job reductions, have generated $2.2 billion in savings over the first nine months of 2025.
