UPS lays off 48,000 as restructuring accelerates

United Parcel Service has cut nearly 48,000 positions across its global operations this year, one of the largest workforce reductions in its 117-year history, as the shipping giant continues a sweeping turnaround effort under Chief Executive Carol Tomé.

The company disclosed in its third-quarter earnings report that 14,000 management and white-collar roles and 34,000 operational jobs have been eliminated through a mix of layoffs and voluntary buyouts. The reductions, which UPS said are largely complete, are part of a multiyear push to simplify its network, lower costs and refocus on higher-margin delivery business.

“We keep finding opportunities for us to bring costs down,” Ms. Tomé said on a call with analysts. “We are positioned to run the most efficient peak in our history.”

Shares of the company rose 11 percent Tuesday after it reported earnings and revenue that surpassed Wall Street expectations, even as overall profit fell from a year earlier.

A turnaround with heavy HR implications

For HR professionals, UPS’s transformation marks one of the most closely watched examples of large-scale workforce realignment in a post-pandemic corporate landscape. The company, long known for promoting from within, has had to navigate the human cost of deep restructuring while maintaining morale through one of the busiest shipping periods of the year.

UPS said its cost-cutting drive has already generated roughly US$2.2 billion in savings this year, with a total of US$3.5 billion projected by the end of 2025. The company has closed 93 buildings to streamline its U.S. network and completed a sale-leaseback of five properties, generating a US$330 million gain.

While such moves have improved short-term margins, they have also raised questions among HR experts about workforce sustainability, leadership development and employee retention in an organization that once prized lifetime careers.

Ms. Tomé, the first outsider to lead UPS and a former Home Depot finance executive, has focused her strategy on profitability over sheer package volume — a shift that has reshaped both the workforce and the company’s culture.

A shifting customer mix

One of the drivers behind the cuts is the company’s changing relationship with Amazon, once its largest customer. UPS said its delivery volume for Amazon declined 21.2 percent in the third quarter, compared with a 13 percent drop in the first half of the year. The loss of that business has prompted UPS to reconfigure its domestic routes and reduce headcount in several regions.

The courier’s U.S. operations remain its backbone, but management has emphasized growing its international and healthcare logistics businesses, where margins are higher. The company said its transformation strategy has already positioned it to handle the coming holiday season “with the most efficient peak in our history.”

The cost of efficiency

The cuts come as parcel carriers face a volatile trade and tariff environment, slowing e-commerce growth, and a tightening labor market that has made attracting and retaining skilled workers increasingly complex. Rival FedEx recently cited US$150 million in headwinds from trade disruptions, underscoring the challenges facing the sector.

In her remarks, Ms. Tomé said the company is incorporating artificial intelligence and automation to improve forecasting, route planning and customs processing. She added that the use of advanced analytics is helping UPS manage a surge in cross-border shipments as global trade patterns shift.

The company reported third-quarter adjusted earnings of US$1.74 per share on revenue of US$21.4 billion, both beating analyst estimates. For the fourth quarter, UPS forecast revenue of about US$24 billion and an operating margin of 11 to 11.5 percent.

Managing transformation through people

For HR executives across industries, UPS’s experience serves as a case study in balancing technology-driven efficiency with human capital strategy. The company’s layoffs follow a broader trend of corporations using automation and reorganization to offset slower growth, often forcing HR leaders to redesign talent pipelines and rethink long-standing employment models.

UPS’s ability to execute its turnaround while preserving institutional knowledge will be closely watched. Its unionized workforce — and the company’s heavy reliance on front-line delivery staff — means the success of Ms. Tomé’s plan depends not only on efficiency but on maintaining employee trust amid rapid change.

Even as investors applauded the results, HR observers note that the coming holiday season will test whether UPS can sustain morale and service quality while operating with a smaller workforce.

If successful, the turnaround could become a model for how large employers realign in a tighter economy. If not, it may stand as a cautionary tale about the limits of cost-cutting in a business built on human reliability.

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