UPS deepens job cuts to 48,000 on reduced Amazon deliveries

NEW YORK - United Parcel Service (UPS) is cutting some 48,000 jobs as part of a major reorganisation connected to a planned reduction in delivery services for Amazon packages, company officials said on Oct 28.

The shipping giant’s driver workforce has fallen by about 34,000 from a year ago, Mr Brian Dykes, chief financial officer for UPS, said on an earnings conference call.

About one-third of that number came in September, with some departures through a “voluntary separation programme”, he said.

The company disclosed that it was

cutting about 14,000 posts,

primarily within management as part of a reorganisation to “create a more efficient operating mode” that is more “responsive to market dynamics”, said the earnings press release.

UPS had 490,000 employees worldwide at the end of 2024.

In January, UPS announced it had reached an agreement to reduce its Amazon volumes by more than 50 per cent by the second half of 2026.

Chief executive Carol Tome has said the shift would enable UPS to phase out operations that are not profitable.

She said on Oct 29 that the company had also shuttered an additional 19 buildings in the United States due to the pullback, bringing the total in 2025 to 93 locations so far.

Executives disclosed that they had deployed additional automation in 35 facilities.

UPS reported profit of US$1.3 billion (S$1.7 billion) in the third quarter, down 14.8 per cent from a year ago. Revenue declined 3.7 per cent to US$21.4 billion. AFP