A UPS employee pushes a cart in New York, US, on Monday, Oct. 27, 2025.
Michael Nagle | Bloomberg | Getty Photographs
United Parcel Service on Tuesday reported earnings that topped Wall Road’s estimates forward of its busy vacation season and revealed deeper job cuts as a part of its sweeping turnaround plan.
The corporate stated Tuesday it is decreased its operational workforce by 34,000 jobs this yr, higher than its earlier estimate of 20,000 reductions. The corporate additionally trimmed 14,000 jobs from its administration workforce.
UPS informed CNBC in a press release these cuts have already taken place.
Shares of the bundle supply big rose 8% on Tuesday.
Here is how the corporate carried out in its third quarter, in contrast with what Wall Road was anticipating based mostly on a survey of analysts by LSEG:
- Earnings per share: $1.74 adjusted vs. $1.30 anticipated
- Income: $21.4 billion vs. $20.83 billion anticipated
For the interval ended Sept. 30, the corporate reported internet earnings of $1.31 billion, or $1.55 per share, in contrast with $1.99 billion, or $1.80 per share, the yr prior. Adjusting for one-time gadgets, together with prices of its transformation technique, the corporate reported revenue of $1.48 billion or $1.74 per share. Income fell to $21.4 billion.
UPS estimates its fourth-quarter income to be $24 billion with an working margin of 11% to 11.5%.
A lot of its workforce reductions have been tied to trimming down its work with Amazon, beforehand its largest buyer.
Within the third quarter, Amazon’s whole quantity with UPS fell 21.2%, executives stated on an earnings name, in contrast with a 13% decline for the primary half of the yr.
UPS additionally initiated a sale-leaseback transaction within the third quarter for 5 properties as a part of its broader technique, which resulted in $330 million of what the corporate described as a pretax achieve on sale in its provide chain options division. It stated Tuesday that it has now closed each day operations at 93 leased and owned buildings by means of September as a part of the initiative.
UPS stated its turnaround plan has resulted in $2.2 billion in financial savings by means of the tip of the third quarter, with an estimate of attaining $3.5 billion whole year-over-year price financial savings in 2025.
“We’re executing essentially the most important strategic shift in our firm’s historical past, and the modifications we’re implementing are designed to ship long-term worth for all stakeholders,” CEO Carol Tomé stated. “With the vacation transport season almost upon us, we’re positioned to run essentially the most environment friendly peak in our historical past whereas offering industry-leading service to our clients for the eighth consecutive yr.”
The courier’s sturdy outcomes come because the parcel {industry} faces a unstable tariff atmosphere and sluggish demand, along with impacts from the tip of the de minimis loophole. Rival FedEx stated final month that it incurred $150 million in headwinds from the worldwide commerce atmosphere.
“The third quarter introduced a wave of tariff modifications, some anticipated, others unexpected, and our crew navigated these complexities with distinctive expertise and resilience,” Tomé stated on the decision, including that the corporate is incorporating synthetic intelligence into its each day operations to adapt to the surge in customs entries.
