UPS Layoffs: 48,000 Jobs Cut Due To Investor Pressures, US Labor Market Shows Signs of Weakness

Logistics giant United Parcel Service (UPS) on Tuesday announced that it has slashed 48,000 jobs since last year in a massive effort to restructure and boost the company’s profits to regain investor confidence. As part of its cost-savings initiative, the Atlanta-based logistics group has closed daily operations at 93 leased and owned buildings in 2025, media reported, citing statements from the company.

The parcel industry has faced significant shipment challenges this year owing to the Trump administration’s tariff flip-flops, which led to disruptions in global trade and commerce. According to the company, the volume of parcels shipped to the US from China fell nearly 30% for the quarter ended September. A report by Mint cited Customs data which revealed that shipments valued under $800, once exempt from tariffs, have plummeted from 4 million packages per day to around 1 million after Trump closed the “de-minimis” loophole in May.

Better-Than-Expected Earnings Send Shares Higher

The logistics behemoth reported better-than-expected earnings for the July-September quarter on Tuesday, and the shares of the company surged nearly 13% in early trading, according to reports. UPS shares had been down almost 28% since the start of the year, a Reuters report said.

The company’s revenue for the quarter ended September stood at $21.4 billion, down 4% on year, and beat analysts’ forecast of $20.8 billion. The operating profit of the company fell 10% on year to $1.8 billion. According to the company, the cost-savings plan, including the layoffs, is said to have generated savings of around $2.2 billion through nine months to September. UPS projects to achieve $3.5 billion in total year-on-year cost savings in 2025.

"In 2025, we're witnessing the most profound shift in trade policy in a century," UPS Chief Executive Officer Carol Tome said in a post-earnings call.

Layoffs Reflect Broader Softening in U.S. Labor Market

In recent years, UPS has faced persistent pressure from investors after its stocks lagged behind in the broader market. The company’s senior management has embarked on a large-scale efficiency overhaul, tightening operations and scaling back unprofitable business, including its delivery partnership with Amazon, Mint reported. In the third quarter, UPS said deliveries for Amazon were down 21% on year as it prioritised higher-margin businesses, reports said.

UPS’s job cuts reflect not only company-specific cost pressures but also broader signs of a softening U.S. labor market. The US labour market has shown signs of a slowdown in recent months, triggering fears of a recession due to erratic tariff and trade policies of the Trump administration.

The initial jobless claims data for the week ended October 18 showed that the number of Americans filing for unemployment benefits rose amid easing labour market conditions. The initial claims for state unemployment benefits rose to 232,000 from 220,000 the prior week. The claims were also higher than analysts’ estimates, which ranged between 227,000-229,000 claims. While UPS’s 48,000 job cuts are primarily aimed at boosting profitability amid unprofitable operations, they also feed into broader labor market trends, reflecting and contributing to rising unemployment claims nationwide.