UPS cuts 34,000 jobs in the year to date as its turnaround continues
By MICHELLE CHAPMAN, Associated Press Business Writer
United Parcel Service (UPS) has exceeded expectations with its third-quarter results, showcasing a strong performance amidst its ongoing turnaround efforts. The company reported earnings of $1.55 per share, surpassing analysts’ estimates and posting revenue of $21.42 billion, which also exceeded Wall Street’s expectations.
Shares of UPS surged over 12% before the market opened on Tuesday, reflecting investor confidence in the company’s strategic initiatives. As part of its turnaround plan, UPS disclosed that it has cut approximately 34,000 positions and closed operations at 93 buildings in the first nine months of the year, with plans to identify more closures in the future.
Earlier in the year, UPS had announced its intention to reduce its Amazon shipments, leading to job cuts and facility closures. The company’s partnership with Amazon, its largest customer, has evolved over nearly three decades, with UPS recently reaching a deal to significantly lower its volume from Amazon by 2026.
CEO Carol Tomé highlighted the cost savings achieved by UPS, totaling $2.2 billion as of September 30, with a projected $3.5 billion in total year-over-year savings expected in 2025. The company’s proactive approach to restructuring its operations reflects its commitment to long-term sustainability and profitability.
