UPS Stuns Wall Street With Strong Profit and 34,000 Job Cuts
Results Suggest CEO Carol Tomé’s Revival Efforts Are Gaining Traction
Key Takeaways:
- UPS shares surged after the company exceeded Wall Street profit forecasts by cutting 34,000 jobs and closing 93 facilities as part of a major cost-reduction plan.
- The moves, which generated $2.2 billion in savings so far this year, reflect CEO Carol Tomé’s efforts to revive UPS amid weak demand, rising costs and trade tensions.
- UPS expects fourth-quarter revenue of about $24 billion and $3.5 billion in total 2025 savings as it pursues automation and trims low-margin business, including work with Amazon.
[Stay on top of transportation news: .]
UPS Inc. shares soared after it smashed Wall Street’s profit expectations by cutting costs and eliminating 34,000 jobs this year.
The cuts to its operational workforce — a group that includes drivers and package handlers — marked a 70% increase from its previous target. As part of the sweeping savings initiative, UPS has closed daily operations at 93 leased and owned buildings in 2025, according to a statement Oct. 28.
The results suggest CEO Carol Tomé’s revival efforts are gaining traction after UPS struggled with slow demand, high expenses and uncertainty fueled by tariffs. The parcel industry has faced significant challenges this year due to disruptions to international commerce under President Donald Trump’s trade policies.
Adjusted earnings for UPS were $1.74 a share last quarter, the company said. That beat the $1.32 average of analyst estimates compiled by Bloomberg. Revenue also outpaced expectations.
“This is exactly what UPS needed,” said Matt Maley, chief market strategist at Miller Tabak. After the shares performed poorly for several years, signs of a possible turnaround are “something that should finally reverse the stock’s momentum.”
The shares jumped as much as 13% as of 9:32 a.m. in New York, the biggest intraday gain since February 2022. Shares of rival FedEx Corp. also rose. UPS had tumbled 29% this year through Monday.
Both package-delivery giants have endured a hit to their most profitable trade route, the lane between China and the US, in the volatile trade environment this year. FedEx said in September that it anticipates a $1 billion headwind this year from the tumult.
McLeod Software CEO Tom McLeod discusses how the company is incorporating AI into trucking software in ways that work for carriers and brokers navigating a challenging freight market. Tune in above or by going to .
UPS said Oct. 28 it expects fourth-quarter revenue of about $24 billion, slightly ahead of expectations.
UPS ranks No. 1 and FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Supply Chain Solutions is No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 3 on the TT Top 50 list of the largest global freight carriers.
The company is seeking to remove less-profitable business from its network, such as low-value e-commerce goods from online retail giant Amazon.com Inc., while also closing and consolidating facilities to make way for more labor-saving automation.
The wind-down of its Amazon business will result in a year-over-year decline in average daily shipping volumes during the coming peak holiday shipping season, Tomé said on the company’s earnings call. Still, UPS’ largest customers are forecasting a “good peak” that will support a “considerable surge” in volumes from current levels, she said.
The company has also reached a preliminary agreement with the US Postal Service covering volumes and rates for final-mile deliveries, Tomé said. A deal would mean that UPS can outsource more of its costly residential deliveries, helping it to further tamp down spending.
UPS is simultaneously grappling with high costs in its hourly workforce, thanks in part to a hefty labor contract between the company and 330,000 members of the International Brotherhood of Teamsters.
The cost-reduction plan, including the job cuts already carried out, have generated savings of about $2.2 billion through the first nine months of this year, UPS said. It expects to achieve $3.5 billion in total year-over-year cost savings in 2025.
Want more news? Listen to today's daily briefing above or go here for more info
The quarterly results were “impressive,” but one good report “may not be enough to turn the massive ship around,” said Mark Malek, chief investment officer at Siebert Financial. “The company has been clearly struggling with growth, even prior to this tariff regime. Pressure from competition and emergence of AI to optimize supply chains is mounting.”
Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 15 on the TT Top 100 list of the largest private carriers and No. 1 on the TT Top 50 list of the largest global freight companies.
