-
United Parcel Service has eliminated 34,000 jobs and closed 93 facilities as of the third quarter 2025 as part of a major US network restructuring
-
Driver buyouts contributed to the reductions with 90% of affected drivers having exited as of August 31
-
The buyout program cost UPS $175 million, according to CEO Carol Tomé
-
UPS is scaling down Amazon volumes by 50% by mid-2026
-
Q3 Amazon shipments fell 21.2% year-on-year
-
Cost-cutting measures have saved $2.2 billion through Q3
-
UPS expects $3.5 billion in full-year savings
United Parcel Service (UPS) has eliminated 34,000 jobs and closed 93 facilities as of the third quarter 2025 as part of a major US network restructuring and volume reduction from key customer Amazon.
The operational workforce reduction includes voluntary buyouts for full-time drivers, with 90% of affected personnel having exited the company as of August 31, according to UPS executive vice president and CFO Brian Dykes said on an earnings call.
International news agencies and other media outlets have reported that another 14,000 management positions were also cut by the American multinational shipping and logistics company.
CEO Carol Tomé called the buyout program “successful,” noting it cost the company $175 million, though she did not disclose the total number of participants.
The restructuring aligns with UPS’ plan to reduce Amazon-related package volume by 50% by June 2026. In the third quarter, Amazon shipments handled by UPS fell 21.2% year-over-year. Despite the decline, Dykes said the relationship remains significant.
“Amazon is still going to be a large customer, right? And there’s a lot of places where we can add value to their supply chain like returns, their inbound [shipping], the small business sellers that sell on the platform,” Dykes said.
The network realignment and building closures have delivered about $2.2 billion in cost savings through the third quarter, according to UPS. The company expects to save a total of $3.5 billion by the end of 2025 as it continues to “identify additional buildings for closure.”
UPS reported consolidated revenue of $21.4 billion for the quarter ended September 30, compared with $22.2 billion in the same period last year. Adjusted earnings per share came in at $1.74, slightly below last year’s $1.76, but ahead of analyst expectations.
The company is also increasing its investment in automation, adding new systems in 35 facilities over the past year. UPS expects 66% of its package volume to move through automated processes in the fourth quarter, up from 63% a year ago.
“As we approach the peak shipping window, we’ll continue to leverage our proven technologies and scale the network where needed, all while maintaining a sharp focus on service quality,” Tomé said. “These advancements position us to run the most efficient peak in our history.”
The company’s latest update surpasses its April forecast, when UPS said it would cut 20,000 jobs and close 73 facilities in response to a “highly uncertain” business environment and the gradual reduction in Amazon business.
READ: UPS launches Asia-Australia next-day delivery services
