UPS to Cut 48,000 Jobs in Major Restructuring as Turnaround Plan Gains Momentum

United Parcel Service (UPS) has announced plans to cut approximately 48,000 jobs this year as part of an aggressive restructuring effort aimed at reducing costs, streamlining operations, and restoring investor confidence, according to multiple media reports. The Atlanta-based delivery giant revealed the details while reporting better-than-expected third-quarter results on Tuesday.

UPS posted a net income of $1.31 billion, or $1.55 per share, for the quarter ended September 30, compared with $1.99 billion, or $1.80 per share, a year earlier. Excluding one-time costs, earnings stood at $1.74 per share, beating analyst expectations of $1.31. Revenue came in at $21.42 billion, surpassing Wall Street’s projection of $20.84 billion. Following the announcement, UPS shares rose more than 7% in afternoon trading.

The company has already eliminated 34,000 operational roles and closed 93 leased and owned facilities this year. An additional 14,000 management and corporate positions are being phased out as UPS continues to identify more sites for consolidation. The job cuts represent a 70% increase from its earlier target of 20,000 layoffs announced in April.

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The restructuring comes as UPS scales back its long-standing partnership with Amazon, its largest customer. Earlier this year, the company reached a deal to cut Amazon shipping volumes by over 50% by 2026, aligning with efforts to focus on higher-margin deliveries. “We are executing the most significant strategic shift in our company’s history,” said CEO Carol Tomé, emphasizing the company’s pivot toward profitability and efficiency.

Despite lower profits year-on-year, UPS reported a 10% rise in U.S. revenue per package and expects $3.5 billion in total annual cost savings by 2025, up from $2.2 billion achieved so far this year.

Analysts say the sweeping cuts and network consolidation could help UPS stabilize margins amid global trade uncertainty and stiff competition in the logistics sector. “This is exactly what UPS needed,” said Matt Maley of Miller Tabak, noting that the firm’s cost discipline has begun to win back investor trust.