October 30, 2025
The United Parcel Service is closing locations and slashing jobs.
The United Parcel Service (UPS) is eliminating an additional 14,000 jobs, on top of earlier cuts in 2025.
UPS states that of the prior cuts, approximately 34,000 operational roles have been eliminated so far this year. The newly revealed 14,000 cuts are primarily in management positions. The company confirmed it has closed 93 leased and owned facilities, NBC reported. The firm stated projected annual savings of about $3.5 billion from the restructuring efforts.
“As of September 30, 2025, we have realized cost savings of approximately $2.2 billion and expect to achieve $3.5 billion total year-over-year cost savings in 2025, from this initiative,” the company said in a statement. “These amounts are calculated on the year-over-year change in volume from our largest customer, taking into account the impact of certain additional volume we have elected to serve.”
CEO Carol Tomé spoke about the decision, stating that maximizing profit for shareholders is a top priority.
“I want to extend my gratitude to all UPSers for their dedication and steadfast commitment to serving our customers,” Tomé told WSBTV in a statement.
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders. With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”
The expansion of job cuts stems in part from UPS’s move to reduce its volume from its largest customer, Amazon.com, Inc., by more than 50% by late 2026. The company cited declining package volume from its Amazon account. Additionally, UPS says increasing automation and facility consolidation are major structural drivers.
While UPS says the company remains committed to delivering top-notch service to its customers, it remains to be seen whether it can fulfill that promise with a leaner workforce.
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