A UPS driver delivers packages in Philadelphia. (Matt Rourke/AP)
October 28, 2025 8:10 AM, EDT
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UPS Inc. shares soared after it smashed Wall Street’s profit expectations by cutting costs and eliminating 34,000 jobs this year.
The cuts to its operational workforce — a group that includes drivers and package handlers — marked a 70% increase from its previous target. As part of the sweeping savings initiative, UPS has closed daily operations at 93 leased and owned buildings in 2025, according to a statement Oct. 28.
The results suggest CEO Carol Tomé’s revival efforts are gaining traction after UPS struggled with slow demand, high expenses and uncertainty fueled by tariffs. The parcel industry has faced significant challenges this year due to disruptions to international commerce under President Donald Trump’s trade policies.
Adjusted earnings for UPS were $1.74 a share last quarter, the company said. That beat the $1.32 average of analyst estimates compiled by Bloomberg. Revenue also outpaced expectations.
“This is exactly what UPS needed,” said Matt Maley, chief market strategist at Miller Tabak. After the shares performed poorly for several years, signs of a possible turnaround are “something that should finally reverse the stock’s momentum.”
The shares jumped 12% as of 6:50 a.m. before regular trading in New York, giving a lift to rival FedEx Corp. as well. UPS had tumbled 29% this year through Oct. 27.
UPS ranks No. 1 and FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America. UPS Supply Chain Solutions is No. 5 on the TT Top 100 list of the largest logistics companies. The company also ranks No. 3 on the TT Top 50 list of the largest global freight carriers.
Both package-delivery giants have endured a hit to their most profitable trade route, the lane between China and the U.S., in the volatile trade environment this year. FedEx said in September that it anticipates a $1 billion headwind this year from the tumult.
UPS said Oct. 28 it expects fourth-quarter revenue of about $24 billion, slightly ahead of expectations.
The company is seeking to remove less-profitable business from its network, such as low-value e-commerce goods from online retail giant Amazon.com Inc., while also closing and consolidating facilities to make way for more labor-saving automation. UPS is simultaneously grappling with high costs in its hourly workforce, thanks in part to a hefty labor contract between the company and 330,000 members of the International Brotherhood of Teamsters.
Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 15 on the TT Top 100 list of the largest private carriers and No. 1 on the TT Top 50 list of the largest global freight companies.
The cost-reduction plan, including the job cuts already carried out, have generated savings of about $2.2 billion through the first nine months of this year, UPS said. It expect to achieve $3.5 billion total year-over-year cost savings in 2025.
The quarterly results were “impressive,” but one good report “may not be enough to turn the massive ship around,” said Mark Malek, chief investment officer at Siebert Financial. “The company has been clearly struggling with growth, even prior to this tariff regime. Pressure from competition and emergence of AI to optimize supply chains is mounting.”
