UPS announces job cuts, cost savings ahead of holiday delivery season

UPS has delivered a mixed bag of economic news ahead of the busy holiday season. The company said it has cut 48,000 jobs this year, more than twice as many as it announced in April, but has racked up cost savings of about $2.2 billion.

“We are executing the most significant strategic shift in our company’s history,” Carol Tomé, the company’s chief executive, said. “And the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history. “

Effect on revenue

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To cut costs and revamp its business model, UPS closed daily operations at 93 leased or owned buildings.

UPS revenue declined year-to-year in the third quarter of 2025 to $21.4 billion, or 3.7% less than in 2024. But that number still beat Wall Street expectations of $20.8 billion. 

The company predicts about $24 billion in revenue in the fourth quarter, which would also exceed previous expectations.

UPS redesign of business model

UPS has redesigned its business model to shipping more expensive packages rather than relying on sheer volume. 

In addition, the revenue drop can also be attributed to a reduction in the company’s deliveries for online retail giant Amazon. CNBC reports that Amazon deliveries fell by about 21% for the third quarter, after declining 13% earlier this year.

At the same time, UPS is incorporating more artificial intelligence into its daily operations. 

U.S. trade policy is also playing a role in changes for the company. Tomé says the courier industry as a whole, including competitor FedEx, face the uncertain effects of tariffs and weaker demand.

“The third quarter brought a wave of tariff changes, some expected, others unforeseen,” she said, “and our team navigated these complexities with exceptional skills and resilience.”

Wall Street’s reaction

UPS’s announcement was welcomed by investors on Wall Street. Shares rose 8% in early trading Tuesday, before leveling off later in the day.

The post UPS announces job cuts, cost savings ahead of holiday delivery season appeared first on Straight Arrow News.

Ella Rae Greene, Editor In Chief

Ella Greene

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