A UPS employee pushes a cart in New York, USA, Monday, October 27, 2025.
Michael Nagle | Bloomberg | Getty Images
united parcel service Financial results reported Tuesday beat Wall Street expectations ahead of the busy holiday season and revealed significant job cuts as part of a sweeping restructuring plan.
The company announced Tuesday that it has cut its operational workforce by 34,000 jobs this year, more than previously expected to reduce its workforce by 20,000. The company also cut 14,000 jobs from its administrative workforce.
UPS told CNBC in a statement that these reductions are already in place.
Shares of the parcel delivery giant rose 8% in early trading.
Here’s how the company’s third-quarter results compared to what Wall Street was expecting based on a survey of analysts by LSEG:
Earnings per share: $1.74 adjusted vs. $1.30 expected Revenue: $21.4 billion vs. $20.83 billion expected
Net income for the year ended September 30 was $1.31 billion, or $1.55 per share, compared with $1.99 billion, or $1.80 per share, in the same period last year. Adjusted for one-time items, including the costs of its transformation strategy, the company reported profit of $1.48 billion, or $1.74 per share. Sales decreased to $21.4 billion.
UPS expects fourth-quarter sales of $24 billion and operating margin of 11% to 11.5%.
Many of the reductions in personnel are tied to reductions in operations. Amazonpreviously our largest customer.
Amazon’s total UPS volume fell 21.2% in the third quarter, compared with a 13% decline in the first half, executives said on an earnings call.
As part of its broader strategy, UPS also entered into sale-leaseback transactions on five properties in the third quarter, resulting in the company earning $330 million in pre-tax gains from the sale of its Supply Chain Solutions division. The company announced Tuesday that as part of this effort, it has suspended daily operations at 93 of its leased and owned buildings through September.
UPS said its turnaround plan resulted in cost savings of $2.2 billion by the end of the third quarter and is expected to deliver total year-over-year cost savings of $3.5 billion in 2025.
“We are executing the most significant strategic shift in our company’s history. The changes we are implementing are designed to deliver long-term value for all of our stakeholders,” said CEO Carol Tomé. “As the holiday shipping season approaches, we are positioned to deliver our highest efficiency peak in our history while providing our customers with industry-leading service for the eighth year in a row.”
The courier’s strong performance comes as the parcel industry faces a volatile pricing environment and weak demand, in addition to the impact of the end of the minimum loophole. rival fedex announced last month that it was facing a $150 million headwind from the global trade environment.
“The third quarter saw a wave of tariff changes, some expected and some unexpected, but our teams navigated these complex situations with extraordinary skill and resilience,” Tome said on the conference call, adding that the company is implementing artificial intelligence into its daily operations to adapt to the surge in customs clearance.
