UPS Surpasses Job Reduction Forecasts, Trimming Workforce by 34,000

In an unexpected move, UPS has significantly reduced its employment numbers, slashing approximately 34,000 jobs. This figure notably surpasses the shipping giant's prior estimate of 20,000 for this year.

Earlier forecasts by UPS had predicted a downsizing of about 20,000 roles by 2025. However, the company confirmed on Tuesday that the reduction has already reached a considerably higher number.

To achieve these workforce cuts, UPS provided certain drivers with early retirement options, as stated by CEO Carol Tomé during a financial results briefing.

Moreover, the company exceeded its initial plan for facility closures. It has ceased operations in 93 properties, both leased and owned, within the first three quarters of 2025. This was a more aggressive move compared to the originally anticipated closure of 70 facilities.

These strategic actions aim to realize a projected $3.5 billion in savings, confirming a landmark overhaul of the company's network, according to CFO Brian Dykes in a recent call with investors.

UPS is also scaling back on less lucrative segments of its business. The most notable adjustment involves its dealings with Amazon, which are set to be reduced by 50% by mid-2026, as announced in January.

Following the announcement of earnings that surpassed Wall Street expectations, UPS shares climbed 12% during early trading hours on Tuesday.