United Parcel Service has eliminated 48,000 jobs so far this year, part of a sweeping restructuring effort that has closed dozens of facilities and reshaped the company's relationship with Amazon. The cuts, disclosed Tuesday alongside stronger-than-expected third-quarter earnings, signal the scale of UPS's turnaround as it works to streamline operations and offset declining parcel volumes.
The Atlanta-based logistics company said the reductions include about 34,000 operational positions and 14,000 management roles. UPS also confirmed it has shut down daily operations at 93 leased and owned buildings through the first nine months of 2025, with additional closures under review.
Shares of UPS surged more than 7% in afternoon trading after the company reported quarterly revenue of $21.42 billion, above Wall Street's $20.84 billion estimate. Adjusted earnings per share came in at $1.74, exceeding analysts' forecast of $1.31, according to Zacks Investment Research. The company earned $1.31 billion for the quarter, down from $1.99 billion a year earlier.
The layoffs far exceed the 20,000 positions the company initially planned to cut in April, when it warned of a "highly uncertain" business environment. At that time, UPS said it expected to close 73 buildings and reduce Amazon shipments by half by the second half of 2026. In January, UPS and Amazon reached a new agreement that lowers package volumes by more than 50%.
"We continue to review expected changes in volume in our integrated air and ground network to identify additional buildings for closure," the company said in its regulatory filing. UPS added that the restructuring has generated about $2.2 billion in cost savings through September 30 and is on track to deliver $3.5 billion in total savings by the end of 2025.
CEO Carol Tomé called the effort "the most significant strategic shift in our company's history." In a statement, she said: "I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers. We are executing the most significant strategic shift in our company's history, and the changes we are implementing are designed to deliver long-term value for all stakeholders."
Tomé also emphasized that UPS remains prepared for the upcoming holiday season. "With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year," she said.
For the fourth quarter, UPS forecasts consolidated revenue of around $24 billion, compared with $25.3 billion a year earlier, signaling continued caution about consumer spending and global shipping trends.
