UPS Plans $3.5bn Cost Savings, Cuts 20,000 Jobs Amid Uncertainty
United Parcel Service (UPS) has announced plans to cut 20,000 jobs and shut 73 facilities as part of a sweeping cost-cutting initiative aimed at saving $3.5bn in 2025.
The announcement came alongside the release of the company’s first-quarter earnings, which exceeded market expectations despite ongoing macroeconomic uncertainty.
The world’s largest package delivery company said the restructuring measures—comprising job reductions, warehouse closures, asset sales, and increased automation—are designed to streamline operations and reinforce the company’s financial resilience in a challenging global environment.
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” said the Chief Executive Officer of UPS, Carol Tomé. “We are navigating a period of economic softness and adjusting our strategy to maintain efficiency, competitiveness, and long-term growth.”
The job cuts follow a previous reduction of 12,000 roles last year and reflect continued pressure on the logistics industry amid softening trade flows.
UPS attributed the slowdown to extended global uncertainty and policy-related disruptions, such as extensive tariffs introduced under the administration of former President Donald Trump, which have led many companies to scale back on costs and shipment volumes.
As part of the cost-saving effort, UPS confirmed it would close 73 leased and owned buildings by the end of June 2025, consolidating operations to optimise capacity and eliminate redundancy across its logistics network.
Despite these structural changes, UPS reported a stronger-than-expected financial performance for the first quarter. Revenue came in at $21.5bn, narrowly surpassing Wall Street expectations of $21.05bn, according to data from LSEG.
The company posted adjusted earnings per share (EPS) of $1.49, well ahead of analyst estimates of $1.38.
In January 2025, the company had forecast full-year revenue of $89bn and an operating margin of approximately 10.8 per cent—guidance that now remains under review.
Shares of UPS rose more than 5 per cent in pre-market trading following the announcement, reflecting investor confidence in the company’s proactive cost management and its ability to sustain profitability amid headwinds.
The planned cost-saving initiatives are expected to significantly improve margins and position the company for sustainable performance beyond 2025.
UPS Plans $3.5bn Cost Savings, Cuts 20,000 Jobs Amid Uncertainty is first published on The Whistler Newspaper
