UPS stock rallies after company discloses 48,000 layoffs in multibillion-dollar savings push

Core Insights - UPS is implementing significant workforce reductions, letting go of approximately 48,000 employees in 2025, which includes 34,000 operational jobs and 14,000 management positions [1][2] - The company anticipates total savings of $3.5 billion from these initiatives, part of its Efficiency Reimagined and Fit to Serve plans [2] - CEO Carol Tomé emphasized a strategic shift towards capturing high-value market segments and addressing complex logistics needs [3] Workforce and Job Cuts - The layoffs are part of a broader strategy to streamline operations, with a notable reduction in partnership volumes with Amazon, which saw a 21.2% decrease in total volume compared to the previous year [4] - UPS has closed 93 buildings this year as part of its cost-cutting measures [5] Financial Performance - UPS reported a revenue expectation of $24 billion for the current quarter, an increase from $21.4 billion in Q3 [5] - Despite the positive earnings report, the stock remains under pressure, down over 23% year-to-date, contrasting with FedEx's 10% loss and the S&P 500's 17% gain [6]