UPS is cutting some 48,000 jobs as part of a major reorganisation connected to a planned reduction in delivery services for Amazon packages, company officials said Tuesday.
The shipping giant’s driver workforce has fallen by about 34,000 from a year ago, Brian Dykes, chief financial officer for the United Parcel Service, said on an earnings conference call.
About one-third of that number came in September, with some departures through a “voluntary separation program,” Dykes said.
In addition, the company disclosed that it was cutting about 14,000 posts, primarily within management, as part of a reorganisation to “create a more efficient operating model” more “responsive to market dynamics,” said the earnings press release.
UPS had 490,000 employees worldwide at the end of 2024.
In January, UPS announced it had reached an agreement to reduce its Amazon volumes by more than 50 per cent by the second half of 2026. CEO Carol Tome has said the shift would enable UPS to phase out operations that are not profitable.
Tome said on Tuesday that the company had also shuttered an additional 19 buildings in the United States due to the pullback, bringing the total in 2025 to 93 buildings so far.
Executives also disclosed that they had deployed additional automation in 35 facilities.
UPS reported profits of $1.3 billion in the third quarter, down 14.8 per cent from the year-ago level. Revenues declined 3.7 per cent to $21.4 billion. Shares jumped eight per cent.
AFP
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