UPS Cuts 34,000 Jobs as Turnaround Strategy Gains Momentum; Q3 Earnings Beat Expectations

Global logistics behemoth United Parcel Service (UPS) announced that it had terminated some 34,000 jobs in the first nine months of 2025 as part of its cost-cutting and restructuring efforts, even as third-quarter results beat Wall Street's estimates.

At the news, UPS shares gained more than 12% in premarket trading on Tuesday.

UPS Reports Strong Q3 Results

For the quarter ended September 30:

Net income reported was $1.31 billion (or $1.55 per share).

Adjusted earnings were $1.74 per share, beating analysts' estimates of $1.31 per share (according to Zacks Investment Research).

Revenues were $21.42 billion, above Wall Street's estimate of $20.84 billion.

Nevertheless, profits were down from $1.99 billion last year, so cost discipline and operational efficiency helped the company post results better than the market anticipated.

Job Cuts and Closure of Facilities

And UPS has specified in a disclosure filing that it has:

Eliminated 34,000 positions since January

Closed 93 leased and owned facilities across its network

Achieved $2.2 billion in cost savings through September 2025

The company expects to reach $3.5 billion in total annual cost savings by the end of 2025.

UPS said it is continuing to review its operations and may identify additional buildings for closure as part of its ongoing optimization efforts.

Reduced Dependence on Amazon

UPS this year announced a major shift in strategy that entails signing a new agreement with Amazon, its largest customer, reducing that delivery volume by more than 50% by the latter part of 2026.

That signifies, following on 30 years of partnership, a far-reaching drive on the part of UPS to diversify its client base and simplify its operations given the changes in e-commerce.

The company in April 2025 had announced plans to lay off 20,000 workers and close over 70 facilities, trimming costs and streamlining its delivery network.

Looking Ahead

Earlier, UPS’s CEO Carol Tome stated that the company is focused on simplifying the operations, increasing the profit, and ensuring long-term growth.

Demand is stabilizing post-pandemic, with UPS trying from being a leaner, more agile, and more profitable logistics leader, even if it means having a smaller operational footprint.