UPS eliminated 48,000 American jobs this year while posting record profits, demonstrating how corporate America continues prioritizing shareholder returns over working families despite Trump’s pro-business policies aimed at strengthening the domestic workforce.
Story Overview
- UPS cut 48,000 jobs total – 34,000 operational workers and 14,000 management positions.
- The company exceeded Wall Street expectations, reporting $1.74 earnings per share, versus $1.30 expected.
- Job cuts are tied to reducing dependency on Amazon as the primary customer.
- The turnaround plan generated $2.2 billion in savings, with a $3.5 billion target for 2025.
Massive Job Cuts Despite Strong Financial Performance
UPS reported eliminating 48,000 positions in 2025, significantly exceeding their initial projection of 20,000 cuts. The package delivery giant reduced its operational workforce by 34,000 employees while trimming 14,000 management positions.
These cuts occurred despite the company beating Wall Street earnings estimates by 34%, posting adjusted earnings of $1.74 per share against expectations of $1.30. This pattern reflects a troubling corporate trend of prioritizing profits over American workers.
🚨 JUST IN: UPS says that it has eliminated roughly 14,000 management roles above the 20,000 cuts it previous said it was targeting. They have also reduced its operations workforce by an additional 34,000 positions.
Everything’s fine. pic.twitter.com/SkRlynbPSe
— Maine (@TheMaineWonk) October 28, 2025
Amazon Relationship Drives Strategic Workforce Reductions
Much of UPS’s workforce reduction stems from deliberately scaling back operations with Amazon, previously their largest customer. Amazon’s shipping volume with UPS plummeted 21.2% in the third quarter, accelerating from a 13% decline in the first half of 2025.
This strategic shift forces UPS to restructure operations while thousands of workers lose their livelihoods. The company closed operations at 93 facilities through September as part of this downsizing initiative.
Corporate Efficiency Comes at Workers’ Expense
CEO Carol Tomé described the changes as “the most significant strategic shift in our company’s history,” emphasizing long-term stakeholder value. The turnaround plan generated $2.2 billion in cost savings through the third quarter, targeting $3.5 billion in total savings for 2025.
UPS also executed sale-leaseback transactions on five properties, netting $330 million in pretax gains. While shareholders celebrated with an 11% stock surge, nearly 50,000 families face unemployment.
$UPS is cutting 34,000 jobs.
"They're losing a lot of volume, not only economically," BofA Securities analyst Ken Hoexter says. "We've seen volumes down. Amazon is taking 50% of its volume off of the network." pic.twitter.com/R0WTj9c0Qu
— Yahoo Finance (@YahooFinance) October 28, 2025
Tariff Challenges Highlight Need for Domestic Focus
UPS navigated volatile tariff environments and global trade disruptions that affected the entire parcel industry. Rival FedEx reported $150 million in headwinds from trade complexities, while UPS incorporated artificial intelligence to manage surging customs entries.
These challenges underscore the importance of reshoring American manufacturing and reducing dependence on global supply chains. Companies should strengthen domestic operations rather than eliminate American jobs when facing international trade pressures.
