UPS has cut 48,000 jobs this year in one of the largest restructurings in the company’s history.
The layoffs come as part of a broader effort to streamline operations and respond to slowing demand across the delivery industry.
Shares of UPS, which had fallen about 28% since the start of the year, jumped nearly 13% after the cuts were announced, signaling that investors support the cost-saving measures.
UPS reported a net income of $1.3 billion in the third quarter, down from $1.5 billion a year earlier. Revenue declined from $22.2 billion to $21.4 billion.
Analysts note that these decreases illustrate both the financial pressure on the company and the market’s preference for efficiency overgrowth.
CEO Carol Tomé described this period as “the most profound shift in trade policy in a century,” calling the restructuring “the most significant strategic shift in our company’s history.”
Observers pointed out that much of the change is aimed at stabilizing short‐term profitability, rather than aggressively expanding new markets.
Of the 48,000 positions eliminated, roughly 34,000 were operational roles — including drivers, warehouse workers and staff at leased or temporary facilities —while about 14,000 were management or salaried roles.
Many affected employees were part-time or unionized, raising concerns about automation and outsourcing.
UPS also offered voluntary buyout packages to full-time U.S. drivers to reduce variable costs.
UPS Chief Financial Officer Brian Dykes told The Wall Street Journal, “you need less variable capacity, fewer leased aircraft, fewer rented vehicles, fewer seasonal workers. That allows you to run a much more efficient network.”
The company has intentionally reduced Amazon deliveries by around 21% to prioritize higher-value business customers and closed 93 facilities this year, with more closures expected.
Across the logistics industry, including Amazon and FedEx, similar measures reflect a broader shift from growth at all costs to profitability, automation and smarter, more efficient networks, with artificial intelligence and robotics increasingly handling fewer but more profitable packages.
Another factor weighing on UPS is the change in the de minimis import rule, which previously allowed goods valued under $800 to enter the U.S. duty-free. The rollback of that exemption for many small e-commerce parcels, particularly from China, has sharply reduced the volume of low-value shipments UPS once handled.
As a result, UPS is pivoting toward business-to-business and domestic deliveries, where revenue per package is higher even if total volume is lower.
UPS executives say the restructuring will strengthen the company in the long-term.
“The changes we are implementing are designed to deliver long-term value for all stakeholders,” Tomé said in a statement. Critics question whether the benefits mainly serve shareholders.
UPS’s shift shows the new logistics reality: fewer packages, smarter networks and a leaner, more automated workforce.
