--- title: "UPS Cuts 48000 Jobs But Beats Earnings | Metaintro" canonical: "https://www.metaintro.com/blog/ups-cuts-48000-jobs-beats-earnings" language: "en" author: "drashtigarach" published: "2025-11-03T11:30:00.000Z" modified: "2026-10-02T19:13:15.283Z" --- [Back to Blog](/blog) [Layoffs](/blog/tag/layoffs) # UPS Cuts 48000 Jobs But Beats Earnings UPS slashes 48,000 positions and closes 93 facilities in massive restructuring while Q3 earnings beat Wall Street expectations with $21.42B revenue as Amazon volumes plunge 21%. [![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach) [November 3, 2025](/blog/archive/2025/11)6 min read ![UPS Cuts 48000 Jobs But Beats Earnings](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/ups-2.png) [https://x.com/intent/tweet?text=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](https://x.com/intent/tweet?text=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings&title=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings&title=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings)[mailto:?subject=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](mailto:?subject=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings) ## Massive Job Cuts Fuel Earnings Beat [United Parcel Service](https://www.ups.com/) delivered a paradoxical performance that epitomizes modern corporate turnarounds: crushing workforce reductions paired with earnings that exceeded expectations. The Atlanta-based shipping giant posted Q3 net income of **$1.31 billion ($1.55 per share)** for the period ended September 30, down from **$1.99 billion ($1.80 per share)** a year earlier. However, adjusted earnings of **$1.74 per share** easily topped analyst forecasts of $1.31. Revenue totaled **$21.42 billion**, surpassing Wall Street's estimate of **$20.84 billion** despite a 3.7% year-over-year decline from $22.2 billion. Shares surged more than 7% following the announcement, reaching three-month highs as investors rewarded the company's aggressive cost discipline over top-line growth concerns. The driver of profitability? Relentless cost-cutting. UPS disclosed it had eliminated **48,000 positions** in the first nine months of 2025, comprising approximately **14,000 management roles** and **34,000 operational workforce positions**—employees involved in day-to-day logistics and delivery services. This represents roughly 10% of UPS's total workforce, which stood at 490,000 employees at year-end 2024. The company closed daily operations at **93 leased and owned buildings** through September as part of its turnaround plan, with executives signaling more closures ahead. CEO Carol Tomé noted UPS closed an additional **19 buildings in Q3 alone**, bringing the year-to-date total to 93—changes made "in tandem with" collapsing [Amazon](https://www.amazon.com/) volumes. UPS has realized cost savings of approximately **$2.2 billion** as of September 30 and anticipates achieving **$3.5 billion** in total year-over-year cost savings for 2025. This aggressive restructuring represents what Tomé characterized as "the most significant strategic shift in our company's history." ## Amazon Breakup Accelerates The restructuring's catalyst: UPS's deliberate divorce from its largest but least profitable customer. [Amazon](https://www.amazon.com/) volumes handled by UPS declined **21.2%** year-over-year in Q3 2025, steeper than the **13% decline** seen over the first half. This accelerating separation follows January's announcement that UPS would slash Amazon volumes by more than **50% by June 2026**. Amazon accounts for nearly **12%** of UPS revenue but CEO Carol Tomé bluntly stated: "Amazon is our largest customer, but it's not our most profitable customer. Its margin is very dilutive to the U.S. domestic business." She emphasized the decision was UPS-driven, not Amazon-mandated, "because if we take no action, it will likely result in diminishing returns." The volume reduction targets outbound shipments from [Amazon's fulfillment centers](https://www.amazon.com/)—deliveries Tomé described as "not profitable for us, nor a healthy fit for our network." As Amazon continues building its own vast logistics infrastructure, reducing dependence on third-party carriers, UPS is choosing to exit the low-margin e-commerce grind before being squeezed further. Q3 average daily volume in the US dropped to approximately **16.2 million packages** from **18.4 million** a year earlier—a staggering **2.2 million daily package decline**. Yet cost per package increased **12.3%** to **$12.92** from **$11.50**, showcasing UPS's strategic pivot toward premium, higher-margin deliveries. US revenue per piece grew **9.8%** in Q3, with UPS successfully replacing Amazon's bulk volumes with shipments from healthcare providers, small-to-medium businesses, and emerging e-commerce players like [Temu](https://www.temu.com/) and [Shein](https://www.shein.com/) willing to pay premium rates for reliable service. ## Automation Replaces Holiday Hiring UPS's transformation extends beyond just shedding Amazon volumes—the company is fundamentally reimagining its operational model through aggressive automation deployment. In the past year, UPS deployed new automated systems in **35 facilities**, with automated hubs now handling approximately **64%** of total volume, up **4.5 percentage points** year-over-year. This automation push is enabling radical peak-season restructuring. Tomé noted UPS is "reducing reliance on seasonal hires" and will "significantly cut back on leased trailers, vehicles and aircraft compared to previous years. Much of this efficiency is powered by automation." The company expects to run its "most efficient peak in company history" despite handling significant holiday volumes—though total peak average daily volume in the US is expected down year-over-year due to the Amazon glide-down plan. Beyond facility automation, UPS completed a "successful voluntary retirement program for many long-term drivers who welcome the opportunity to retire from UPS after decades of dedicated service" in Q3—corporate-speak for incentivized departures that further reduced headcount. The company also executed a sale-leaseback transaction on five properties generating a **$330 million pretax gain** in its supply chain solutions division, converting owned real estate to cash while maintaining operational access. ## Tariff Turbulence and Future Uncertainty Despite the earnings beat, significant headwinds loom. Tomé acknowledged 2025 is witnessing "the most profound shift in trade policy in a century," with [tariff](https://www.trade.gov/) changes creating complex challenges. She noted "export volume fell in our higher-margin lanes and grew in our lower-margin lanes," pressuring international operating margin. UPS forecasts Q4 revenue of approximately **$24 billion** with operating margin between **11% and 11.5%**. For full-year 2025, capital expenditures are projected around $3.5 billion with dividends totaling approximately **$5.5 billion**—raising questions about dividend sustainability if earnings don't stabilize given the massive payout ratio. When UPS initially announced its Amazon volume reduction strategy in January, the company forecast 2025 revenue of **$89 billion**, well below analysts' estimates of **$94.88 billion**—a nearly $6 billion shortfall that sent shares tumbling over 14% in what MarketWatch called the stock's worst day ever. Long-term, analysts expect UPS aims to hit a **$94.5 billion revenue target by 2028**, requiring steady **1.5% annual revenue growth**. Some optimistic projections envision **$8 billion in annual earnings** powered by rapid automation adoption—but achieving those targets depends on successfully replacing Amazon's massive volumes with enough premium business to offset both the quantity loss and maintain margin expansion. Labor advocates warn such aggressive workforce reduction strategies, if widely adopted across logistics, could erode job stability sector-wide, while regional economies dependent on [UPS facilities](https://www.ups.com/) face economic disruption from closures. For now, [Wall Street](https://www.wsj.com/) applauds the ruthless efficiency. Whether UPS can sustain profit growth while navigating tariff uncertainty, replacing 50% of its largest customer's volumes, and managing a workforce downsized by tens of thousands remains the critical question for investors—and the 48,000 former employees now competing in an already challenging job market. If you're among the thousands affected by logistics layoffs or navigating today's turbulent job market, try [Metaintro](/) for verified roles. ### Share this article [https://x.com/intent/tweet?text=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](https://x.com/intent/tweet?text=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings&title=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings&title=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings)[mailto:?subject=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings](mailto:?subject=UPS%20Cuts%2048000%20Jobs%20But%20Beats%20Earnings&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-cuts-48000-jobs-beats-earnings) For job seekers ## Skip the job boards. 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