UPS Layoffs: 34,000 workers laid off in first 9 months of 2025 amid turnaround efforts
United Parcel Service on Tuesday said it is cutting 34,000 jobs this year to cut costs as the firm reported better profits than Wall Street expectations.
Providing details on its turnaround efforts, UPS said the layoffs were among its permanent operational workforce of drivers and package carriers.
The 34,000 jobs eliminated represented a 70 percent increase over the previous target. UPS announced in April that it planned to lay off 20,000 employees as part of its turnaround plan.
How does UPS reduce costs?
Besides the layoffs at UPS, the company is looking for other ways to cut costs as it significantly reduces the number of Amazon shipments it handles.
As part of its turnaround plan, UPS closed day-to-day operations in 93 buildings it leased and owned in the first nine months of this year, beyond its own expectations.
In its April announcement, the company said it expected 73 leased and owned buildings to be closed by the end of June.
“This was exactly what UPS needed,” said Matt Maley, chief market strategist at Miller Tabak.
The package company also said it was looking for other locations to shut down operations to replace workers with more labor-saving automated work.
UPS also said it was trying to shut down less profitable businesses from its network, such as low-value e-commerce products from Amazon.
UPS Q3 results
UPS earned $1.31 billion, or $1.55 per share, in the three months ended Sept. 30. By comparison, the Atlanta-based company earned $1.99 billion, or $1.80 per share, a year ago. Stripping out one-time costs, earnings per share were $1.74.
That figure easily exceeded the $1.31 per share demanded by analysts surveyed by Zacks Investment Research, according to a Reuters report.
Revenue came in at $21.42 billion, beating Wall Street’s forecast of $20.84 billion.
Better-than-expected UPS Q3 results show Chief Executive Carol Tomé’s turnaround plans are working after the company struggled with sluggish demand, uncertainty triggered by Trump tariffs and higher costs.
The package industry has faced significant challenges this year due to disruptions to international trade due to President Donald Trump’s trade policies.
UPS said Tuesday it expects Q4 revenue to be $24 billion, slightly above expectations.
UPS’s cost-cutting plan, including layoffs, has resulted in savings of about $2.2 billion so far in the first nine months of this year, the company said.
It is expected to achieve $3.5 billion in total annual cost savings in 2025.
