United Parcel Service (UPS) has made significant workforce reductions this year, cutting approximately 48,000 positions, primarily from its operational workforce. In its recent 8-K filing, the company revealed that around 34,000 operational jobs, which include drivers, were eliminated under a cost-saving strategy, along with an additional 14,000 positions from management.
Brian Dykes, UPS Chief Financial Officer, provided insights during the company’s earnings call, indicating that the operational cuts included several full-time drivers who accepted voluntary buyouts, with 90% of those leaving the company by August 31. This move is part of a broader initiative aimed at consolidating the company’s operations and enhancing efficiency. The company also reported the closure of daily operations at 93 of its leased and owned facilities during the first nine months of 2025 and is considering additional closures to streamline operations further.
Chief Executive Officer Carol Tomé characterized these developments as the “most significant strategic shift in our company’s history.” As the holiday shipping season approaches, she reassured stakeholders that the company is prepared to operate at peak efficiency while maintaining high service standards for the eighth consecutive year.
Earlier this year, in April, UPS indicated it would lay off around 20,000 workers and close approximately 73 facilities throughout 2025. These actions were attributed to “new or increased tariffs” and “changes in general economic conditions” both domestically and internationally. Dykes also pointed out that the reductions align with UPS’s strategy to cut Amazon deliveries by more than half.
As of 2024, UPS’s global workforce consisted of about 490,000 individuals, including 330,000 jobs represented by Teamsters in the United States.
In its latest financial report, UPS announced revenue of $21.4 billion for the third quarter, with a net income of $1.31 billion, resulting in earnings of $1.55 per share. However, the company experienced a year-over-year decline in package volume, handling 19.4 million packages—a drop of 9.8%. To date, UPS has achieved cost savings of $2.2 billion compared to the previous year and anticipates reaching total savings of $3.5 billion by the end of 2025. The Network Reconfiguration and Efficiency Reimagined plan is expected to conclude by 2027.
