United Parcel Service (UPS) is undertaking major changes to improve its business. The logistics giant disclosed it has cut 48,000 jobs year-to-date as part of its $3.5 billion cost-reduction plan. The job cuts were disclosed alongside UPS’ better-than-expected third-quarter results, released before the market opened today. Following the news, UPS stock jumped nearly 13% today.
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Job Cuts and Operational Overhaul
So far in 2025, UPS has cut 14,000 management roles and 34,000 operational positions, such as drivers and warehouse staff. This marks one of the largest workforce reductions in the company’s history. UPS has also shuttered 93 facilities this year to streamline operations and boost profitability.
These moves are part of CEO Carol Tome’s “better, not bigger” strategy, which focuses on quality over quantity in delivery volumes.
The company is shifting away from volume-driven growth toward higher-margin business, including healthcare logistics and small-to-mid-sized business (SMB) services.
UPS insists these changes will help position the company for long-term resilience, especially as global B2C volumes soften and Amazon (AMZN) continues to scale back its reliance on UPS services.
Q3 Earnings Beat Expectations
UPS reported adjusted Q3 earnings of $1.74 per share, well above analyst expectations of $1.29. Revenue came in at $21.4 billion, topping forecasts of $20.84 billion.
The company also provided a strong outlook for the holiday quarter. It projects Q4 revenue of $24 billion, exceeding Wall Street’s forecasts of $23.8 billion.
Further, the cost-cutting efforts are improving profit margins. The company expects an adjusted operating margin of 11% to 11.5% for the fourth quarter.
Is UPS a Good Stock to Buy Now?
Turning to Wall Street, UPS stock has a Hold consensus rating based on seven Buys, nine Holds, and three Sells assigned in the last three months. At $98.58, the average United Parcel stock price target implies a 3.08% upside potential.
