Catenaa, Tuesday, October 28, 2025- UPS stock surged by 8% on Tuesday after it revealed about 48,000 job cuts to its workforce throughout 2025.
The company’s third-quarter earnings report, which beat expectations on both the top and bottom lines, also revealed that through the first nine months of the year, UPS had laid off approximately 48,000 employees.
Those cuts included 34,000 operational jobs as part of its Efficiency Reimagined initiative and 14,000 jobs, primarily within management, as part of its Fit to Serve plan to streamline its business.
The company said it expects total savings of $3.5 billion as part of this push.
At the end of last year, UPS employed approximately 490,000 people, including 78,000 in management positions.
“UPS is executing the most significant strategic shift in our company’s history,” CEO Carol Tomé told investors on the company’s earnings call. “We’re focused on winning where it matters most, capturing high-value parts of the market and onboarding customers with increasingly complex logistics needs.”
The layoffs were partially related to a scale-back of UPS’s partnership with Amazon as the e-commerce retailer builds up its own delivery network.
Tome said that compared to last year, Amazon’s total volume was down 21.2% in the quarter, a bigger difference than the 13% drop in the first half of this year.
By late 2026, UPS plans to cut Amazon shipping volumes by more than half.
That also led to changes in its US network, with the company closing an additional 19 buildings in the quarter, bringing its total so far this year to 93 buildings.
UPS stock is down by over 23% so far this year, but has gained by over 15% since September 29.
Alongside these cost-cutting plans, Tomé added that tariff uncertainty appeared “somewhat resolved,” and as its Amazon “glide down” continues, the company said it expects revenue in its current quarter to tally $24 billion, up from $21.4 billion in Q3.
