UPS lay offs: Amazon, Target, now United Parcel Service cuts 34,000-48,000 high-profile jobs, claim reports

United Parcel Service said on Tuesday it has cut 34,000 jobs over the first nine months of this year, Reuters reported. WSJ reported that UPS is cutting 48,000 jobs in management and operations. United Parcel Service shares rose 11 per cent in premarket trading. UPS shares are down about 28 per cent since the start of the year. UPS has been shuttering hundreds of facilities, slashing thousands of jobs and offering buyouts to its union drivers as part of its largest-ever overhaul aimed at reducing $3.5 billion in costs in 2025. This comes at a time when Amazon and Target have announced major job cuts.

The company reported an adjusted profit of $1.74 per share for the three months ended September 30, beating analysts' average expectations of $1.30. Atlanta-based UPS reported consolidated revenue of $21.41 billion, above expectations of $20.83 billion.

It reported an adjusted consolidated operating margin of 10 per cent, up from 8.8 per cent in the second quarter. That margin was 6.4 per cent, down from 7 per cent in the second quarter, in the domestic segment, its largest. The company expects adjusted operating margin for the fourth quarter to be between 11 per cent and 11.5 per cent.


United Parcel Service beat analysts' estimates for third-quarter profit and forecast revenue above Wall Street expectations for the holiday season on Tuesday, banking on price increases to offset soft business-to-business demand in the U.S.

The forecast and the profit beat signal early progress in UPS' efforts to rebuild margins and stabilize volumes after a bruising year marked by tariff-related volume slump, the end of "de minimis" exemptions and rising costs.

The company projected revenue to be about $24 billion for the fourth quarter. Analysts on average were expecting quarterly revenue of $23.8 billion, according to data compiled by LSEG.

"The reintroduction of a 4Q guide, and one that points to upside to consensus, will likely add to the covering event today," said Evercore ISI analyst Jonathan Chappell, adding that expectations were "very low" coming into the print.

The world's biggest parcel delivery firm is now leaning on rate hikes, cost cuts and a sharper focus on high-margin shipments to steady its business ahead of the crucial holiday season.

The company has accelerated efforts to reduce the number of packages it delivers for its top customer, Amazon.com, to boost its profit margins.

UPS Lay offs

UPS has been shuttering hundreds of facilities, slashing thousands of jobs and offering buyouts to its union drivers as part of its largest-ever overhaul aimed at reducing costs by $3.5 billion in 2025. Like UPS, FedEx has been cutting costs to protect its margins, a move that helped it deliver quarterly results above Wall Street expectations in September, despite the removal of "de minimis" exemptions for China and Hong Kong, which reduced revenue by about $150 million.

The small package delivery business that UPS dominates is also under pressure from frozen corporate decision-making and subdued consumer sentiment as they adapt to the economic fallout from President Donald Trump's changing trade policies.

The peak holiday shipping and return season, when UPS daily average volumes can double, spans from November to the end of January.

FAQs

Q1. Is there any UPS lay off?

A1. Yes. There are UPS lay offs.Q2. How has United Parcel Service performed?

A2. United Parcel Service reported an adjusted profit of $1.74 per share for the three months ended September 30, beating analysts' average expectations of $1.30. Atlanta-based UPS reported consolidated revenue of $21.41 billion, above expectations of $20.83 billion.