A UPS worker pushes a cart in New York, US, on Monday, Oct. 27, 2025.
Michael Nagle | Bloomberg | Getty Images
United Parcel Service on Tuesday reported earnings that topped Wall Street’s estimates ahead of its busy holiday season and revealed deeper job cuts as part of its sweeping turnaround plan.
The company said Tuesday it’s reduced its operational workforce by 34,000 jobs this year, greater than its previous estimate of 20,000 reductions. The company also trimmed 14,000 jobs from its management workforce.
UPS told CNBC in a statement those cuts have already taken place.
Shares of the package delivery giant surged 11% in early trading.
Here’s how the company performed in its third quarter, compared with what Wall Street was expecting based on a survey of analysts by LSEG:
- Earnings per share: $1.74 adjusted vs. $1.30 expected
- Revenue: $21.4 billion vs. $20.83 billion expected
For the period ended Sept. 30, the company reported net income of $1.31 billion, or $1.55 per share, compared with $1.99 billion, or $1.80 per share, the year prior. Adjusting for one-time items, including costs of its transformation strategy, the company reported profit of $1.48 billion or $1.74 per share. Revenue fell to $21.4 billion.
UPS estimates its fourth-quarter revenue to be $24 billion with an operating margin of 11% to 11.5%.
Much of its workforce reductions have been tied to trimming down its work with Amazon, previously its largest customer.
In the third quarter, Amazon’s total volume with UPS fell 21.2%, executives said on an earnings call, compared with a 13% decline for the first half of the year.
UPS also initiated a sale-leaseback transaction in the third quarter for five properties as part of its broader strategy, which resulted in $330 million of what the company described as a pretax gain on sale in its supply chain solutions division. It said Tuesday that it has now closed daily operations at 93 leased and owned buildings through September as part of the initiative.
UPS said its turnaround plan has resulted in $2.2 billion in savings through the end of the third quarter, with an estimate of achieving $3.5 billion total year-over-year cost savings in 2025.
“We are executing the most significant strategic shift in our company’s history, and the changes we are implementing are designed to deliver long-term value for all stakeholders,” CEO Carol Tomé said. “With the holiday shipping season nearly upon us, we are positioned to run the most efficient peak in our history while providing industry-leading service to our customers for the eighth consecutive year.”
The courier’s strong results come as the parcel industry faces a volatile tariff environment and sluggish demand, in addition to impacts from the end of the de minimis loophole. Rival FedEx said last month that it incurred $150 million in headwinds from the global trade environment.
“The third quarter brought a wave of tariff changes, some expected, others unforeseen, and our team navigated these complexities with exceptional skills and resilience,” Tomé said on the call, adding that the company is incorporating artificial intelligence into its daily operations to adapt to the surge in customs entries.