United Parcel Service (UPS) has announced the elimination of approximately 48,000 jobs in 2025, marking one of the most significant workforce reductions in its corporate history.
The cuts span both operational and management roles, with the company citing the need to streamline operations, reduce costs, and respond to shifting market dynamics.
The move is part of UPS’s broader “Fit to Serve” initiative aimed at building a leaner and more responsive business model.
Breakdown of Job Cuts at UPS
Of the 48,000 positions eliminated, 34,000 were operational roles, primarily involving drivers and warehouse workers across the United States.
The remaining 14,000 jobs were management and corporate positions, including mid-level supervisors and administrative staff.
UPS confirmed the figures during its third-quarter earnings call, noting that the reductions were concentrated in the first nine months of 2025.
Chief Financial Officer Brian Dykes stated that a significant portion of the operational exits occurred through a voluntary separation program, with nearly 90% of full-time drivers opting for buyouts by the end of August.
The company also disclosed that it had closed 93 leased and owned facilities as part of its network reconfiguration efforts.
Strategic Shift and Market Pressures
UPS CEO Carol Tomé described the layoffs as part of the company’s “biggest strategic shift ever.”
The restructuring aims to deliver long-term value for stakeholders by improving profitability and regaining investor confidence.
UPS began the year with a workforce of nearly 500,000 employees, and the current cuts represent close to 10% of its global headcount.
The decision comes amid declining package volumes and reduced delivery contracts, particularly with major clients like Amazon.
UPS has been phasing out unprofitable operations and consolidating delivery routes to adapt to lower demand.
Analysts note that the company is under pressure to maintain margins in a competitive logistics market increasingly shaped by automation and e-commerce shifts.
Impact on Employees and Facilities
The layoffs have affected workers across multiple states, with operational hubs in Georgia, Pennsylvania, and Illinois seeing the largest reductions.
UPS has offered severance packages and transition support to affected employees, but the scale of the cuts has raised concerns among labor unions and local officials.
In addition to job losses, UPS has shuttered dozens of facilities to reduce overhead and improve delivery efficiency.
The company will continue evaluating its real estate footprint through the remainder of 2025.
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