UPS Cuts More-than-Expected 48,000 Jobs Amid Profit-Focused Push

Core Insights - UPS has implemented deeper job cuts than initially anticipated, reducing its operational workforce by approximately 34,000 positions, exceeding the earlier estimate of 20,000 layoffs announced in April [1][2] - The company also cut 14,000 management jobs, aligning with previous projections [1] Financial Performance - UPS reported a revenue decline of 3.7 percent to $21.4 billion, with net income at $1.3 billion, translating to an adjusted profit of $1.74 per share, surpassing analyst expectations of $20.8 billion in revenue and $1.30 per share in adjusted earnings [3] - For the fourth quarter, UPS anticipates revenue of approximately $24 billion, a decrease of 2.8 percent from $25.3 billion the previous year, but expects improved adjusted operating margins between 11 percent to 11.5 percent of sales [4] Operational Changes - The company experienced a significant decline in average daily volumes, which fell by 12.3 percent to 16.2 million packages, leading to a 26 percent drop in U.S. revenue to $14.2 billion [5] - A major factor in the volume decline is UPS's decision to reduce its handling of Amazon's packages by over 50 percent by the second half of 2026, as part of a strategy to eliminate less profitable e-commerce volume and enhance revenue per package [5]