NRI PULSE STAFF REPORT
Atlanta, October 28, 2025: Atlanta-based United Parcel Service (UPS) has disclosed that it has cut approximately 48,000 jobs so far this year—34,000 in operations and 14,000 in management—far exceeding the 20,000 job cuts it projected in April. The company said the reductions are part of a sweeping effort to streamline operations and adjust to shifting package volumes and business demands.
In April, UPS had announced plans to slash about 20,000 jobs and close more than 70 facilities by midyear. However, its October disclosure shows that the cuts have been significantly deeper than initially expected. According to the company, the reductions were achieved through a mix of layoffs, voluntary retirements, and restructuring within its U.S. network. UPS has also shut down more than 90 leased or owned facilities during the first nine months of 2025.
Executives said the decision reflects broader strategic changes, including a major reduction in the company’s reliance on Amazon, which has been its largest customer. UPS plans to cut the volume of Amazon deliveries by more than half by the second half of 2026. The company is also contending with slowing e-commerce growth and weaker parcel volumes as consumers adjust their post-pandemic spending habits.
UPS said it has already realized about $2.2 billion in cost savings tied to the restructuring and expects total savings of around $3.5 billion by the end of 2025. Despite the massive workforce reduction, UPS reported third-quarter revenue of $21.42 billion, surpassing market expectations and driving its stock price higher.
The company did not disclose how the cuts are distributed geographically, but said it is still identifying additional facilities that may be consolidated or closed. Industry observers say the scale of the layoffs, especially among management, underscores UPS’s determination to reset its cost structure and adapt to a leaner logistics environment. With the holiday shipping season approaching, the company’s ability to maintain service levels will be closely watched by customers and unions alike.
Cover photo courtesy: UPS
