UPS says that it has laid off 48,000 employees so far this year as part of a widespread cost-cutting effort, accounting for nearly 10% of the delivery company's total workforce.

According to The New York Times, 34,000 of the cuts were to the driver and warehouse workforces, while the remaining 14,000 layoffs were in UPS's management tier. The company also reported $1.3 billion in net income for the third quarter of 2025, down from $1.5 billion in that same quarter last year. Q3 revenue dipped from $22.2 billion in 2024 to $21.4 billion this year as well, with the company scaling back its deliveries with Amazon, and facing a 30% dip in package volumes from China to the U.S. for the quarter.

UPS reported $2.2 billion in savings for the year through Q3 from its cost-cutting initiatives, which included a sale-leaseback strategy within the company's supply chain solutions division. As of September, UPS has closed daily operations at 93 leased and owned buildings, in what CEO Carol Tomé described as "the most significant strategy shift in our company's history."

“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," Tomé said in an October 28 call with investors reported on by CNBC.