UPS Announces Additional 14,000 Job Cuts Amid Turnaround Strategy

ATLANTA, GA (October 28, 2025) – United Parcel Service (UPS), headquartered in Sandy Springs, has disclosed plans to cut an additional 14,000 jobs as part of its extensive turnaround strategy. This announcement follows the company’s third-quarter earnings report, which exceeded Wall Street's expectations, revealing a net income of $1.31 billion, or $1.55 per share, for the quarter ending September 30, 2025.

The total number of job cuts this year has now reached approximately 34,000, which is significantly higher than the original estimate of 20,000 announced in April. According to UPS's statements, these reductions primarily affect management positions and are part of a broader initiative to streamline operations amid declining shipment volumes from Amazon, the company's largest customer.

In light of these challenges, UPS closed daily operations at 93 leased and owned buildings during the first nine months of 2025, with plans to identify additional facilities for closure. "As of September 30, we have realized cost savings of approximately $2.2 billion and expect to achieve a total of $3.5 billion in year-over-year savings by the end of 2025," the company stated in their earnings release. These savings are attributed to a strategic reduction in shipments from Amazon, with UPS having reached an agreement to lower its volume from the e-commerce giant by more than 50% by the second half of 2026.

The company's revenue for the third quarter amounted to $21.42 billion, surpassing analysts' estimates of $20.84 billion. This performance led to a notable increase in UPS shares, which surged over 12% in pre-market trading following the announcement. The company’s previous year earnings for the same quarter stood at $1.99 billion, or $1.80 per share, indicating a significant shift in performance amid ongoing restructuring efforts.

Despite these measures, some industry experts express concern about the long-term implications of such drastic cuts. According to Dr. Emily Carter, an expert in logistics management at the Massachusetts Institute of Technology, "While the immediate financial results may appear positive, the extensive job cuts could lead to operational inefficiencies in the long run, particularly if UPS fails to maintain its service levels."

Conversely, UPS executives assert that these changes are necessary to adapt to a rapidly evolving market landscape. "We are committed to optimizing our network and ensuring we remain competitive in the logistics sector," said David Abney, CEO of UPS, during the earnings call.

The current state of UPS reflects broader trends within the logistics industry, which faces increasing pressure from rising operational costs and shifting consumer behaviors. As companies like Amazon continue to expand their own delivery capabilities, traditional logistics firms are forced to adapt quickly or risk losing market share.

Looking ahead, analysts predict that UPS will continue to adjust its operations, potentially leading to further job cuts and facility closures as it navigates a challenging economic environment. The company's strategic pivot underscores the need for resilience in a sector that is increasingly pressured by technological advancements and changing consumer expectations.

In summary, UPS's announcement of an additional 14,000 job cuts is a significant development in the company’s ongoing efforts to streamline operations and reduce costs in response to market changes. As the company works to implement its turnaround strategy, the long-term impact of these cuts on both its workforce and operational efficiency remains to be seen.