UPS Cuts 48,000 Jobs as 2025 Restructuring Plan Expands
UPS is making big changes this year, as part of a long-term effort to simplify operations and cut costs.
The company confirmed on October 28th that it has eliminated 48,000 positions, most of them coming from its operational workforce.
About 34,000 of those cuts were in delivery and warehouse roles, while another 14,000 were managerial roles.
Chief Financial Officer Brian Dykes said many of the operational reductions were voluntary buyouts, with 90% of participants leaving by the end of August. He also reiterated that these changes are designed to make UPS more efficient ahead of the busy holiday season.
A Cost-Saving Plan Years in the Making
The cuts are part of a multiyear UPS restructuring plan called Network Reconfiguration and Efficiency Reimagined.
Under the plan, UPS has already closed 93 leased and owned facilities across the United States, with more expected to follow in 2026. The company says these closures will help to modernize its network and improve delivery speeds.
Chief Executive Officer Carol Tomé called the overhaul one of the most significant shifts in UPS history. She said the restructuring is meant to make the company move faster as it prepares for the holiday season.
Aligning With Changing Market Conditions
These UPS job cuts are building on an earlier announcement from April of this year, when UPS said it expected to eliminate around 20,000 positions and close 73 facilities by the end of 2025.
Executives pointed to inflation, higher tariffs, and changing global trade patterns as the main challenges shaping their decision.
CFO Dykes also said that UPS has been reducing its delivery volume for Amazon by more than half, shifting its focus toward high-value contracts. The company has been leaning into healthcare logistics and specialized freight, areas that bring higher profit margins than everyday e-commerce deliveries.
UPS Earnings Report Highlights
According to the latest UPS earnings report, the company generated $21.4 billion in revenue for the third quarter, with $1.31 billion in net income, or $1.55 per share.
Package volume fell by almost 10%, compared to last year, averaging about 19.4 million deliveries per day.
Still, the company said it saved $2.2 billion in expenses as of September 30th and expects to reach $3.5 billion in total UPS cost savings by the end of 2025. The restructuring is scheduled to wrap up by 2027.
What It Means for Workers
In 2024, UPS employed roughly 490,000 people worldwide, including about 330,000 represented by the Teamsters union.
The company hasn’t shared how many of the UPS layoffs in 2025 will involve unionized positions, though most are believed to come from U.S.-based delivery operations.
Industry analysts say UPS is trying to balance cost-cutting with customer satisfaction, not an easy task in a competitive shipping landscape.
What It Means for Us
As online shopping patterns continue to shift, logistics companies are adjusting to changing demand, higher wages, and rising fuel costs.
UPS says it’s confident its reconfiguration plan will help it deliver with record efficiency during the 2025 holiday season.
But, if things get a little too overwhelming, maybe Kris Kringle can sprinkle some magic on the workers affected by the layoffs and lend a hand with all those last-minute deliveries.
Did you find this information useful? Feel free to bookmark or to post to your timeline to share with your friends.