Mirror Review
October 30, 2025
United Parcel Service (UPS) has dramatically expanded its workforce reduction plans this year. What began in April 2025 as a 20,000-job cut has grown into a massive 48,000 layoffs by October, according to UPS’s latest quarterly report.
This figure includes roughly 34,000 operational roles and 14,000 management positions, marking one of the largest corporate downsizings in the logistics sector this decade.
These UPS layoffs are part of what CEO Carol Tomé calls the company’s “most significant strategic shift in our history.”
The Atlanta-based shipping giant, with a workforce of around 490,000 employees worldwide, says the goal is to become leaner, more efficient, and less dependent on the low-margin delivery business.
Here’s everything to know about what’s driving this decision and what experts are saying about it.
UPS Job Cuts and Facility Closures (October 2025 Update)
- Total Layoffs: 48,000 employees cut so far in 2025
- 34,000 operational roles (drivers, warehouse, and support staff)
- 14,000 management and corporate roles
- Initial Plan: Began with 20,000 layoffs announced in April 2025
- Facility Closures:
- 93 UPS buildings closed (up from the originally planned 73)
- Includes both leased and owned facilities
- Savings Target:
- Expected $3.5 billion in cost savings for 2025
- $2.2 billion already realized by the end of Q3 2025
- Purpose:
- Streamline overlapping routes and regional hubs
- Reduce operational redundancies
- Support automation and efficiency goals under the Network of the Future plan
- Impact Scope: Represents nearly 10% of UPS’s total workforce
- Goal: Build a leaner, more profitable delivery network focused on long-term efficiency over short-term parcel volume
Here are the 5 Reasons Behind the 48,000 UPS Layoffs in 2025
1. Major Restructuring Under “Network of the Future”
UPS is undergoing a large-scale overhaul of its operations. The Network of the Future program aims to consolidate facilities, digitize logistics, and integrate AI-based systems to improve delivery speed and efficiency.
- The plan includes closing 93 facilities and restructuring delivery zones.
- It targets $3.5 billion in cost savings this year.
2. Reduced Dependence on Amazon and Low-Margin Deliveries
UPS is intentionally scaling down shipments from Amazon, historically its largest customer, by more than 50% through 2026.
- The goal: focus on revenue quality over quantity.
- UPS is redirecting resources toward healthcare, small business, and international clients that offer better profit margins.
- This move, however, has led to thousands of job reductions in Amazon-linked delivery routes and sorting operations.
3. Automation Replacing Traditional Roles
A major driver behind the UPS layoffs is automation. UPS is increasingly adopting robotics, AI, and machine learning across its network.
- Automated sorting centers and AI route optimization are replacing manual labor.
- The company is testing autonomous trucks and smart routing algorithms to cut delivery times and fuel use.
- Many warehouse, data entry, and dispatch roles have been eliminated permanently as part of this technological transition.
4. Trade and Global Freight Slowdown
Global trade challenges have hit UPS’s international shipments hard.
- New U.S. tariffs and weaker China trade volumes have reduced cross-border parcel flow.
- UPS handles about 400,000 imported parcels daily, and its once-profitable China–US trade lane has declined sharply.
- CEO Carol Tomé said, “The world has not faced such enormous potential impacts to trade in more than a century.”
These conditions have made cost discipline essential for UPS’s long-term survival.
5. Industry-Wide Logistics Slowdown and Economic Cooling
UPS’s layoffs reflect a broader cooling across the logistics industry.
- Slower e-commerce growth, reduced consumer spending, and higher operating costs have pressured delivery companies.
- Experts say the post-pandemic “no-hire, no-fire” period is ending.
- John Challenger, CEO of Challenger, Gray & Christmas, noted: “These are major layoffs — the kind you only see when the economy is fundamentally shifting.”
In short, UPS is adjusting to a smaller, slower, and more efficiency-driven logistics landscape.
What Executives and Officials Are Saying
- UPS CEO Carol Tomé:
“This is the most significant strategic shift in our company’s history. We’re streamlining UPS to be faster, more efficient, and better positioned for the future of logistics.”
- UPS CFO Brian Dykes:
“These actions enable us to expand our U.S. Domestic operating margin and ensure sustainable profitability in a changing global environment.”
- Teamsters General President Sean M. O’Brien:
“If the company attempts to violate our contract or go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”
Labour unions remain watchful as automation and consolidation continue to reshape the company’s workforce through 2026.
Final Thoughts
The 2025 UPS layoffs have grown far beyond the initial 20,000-job plan, now reaching 48,000 positions across both corporate and operational divisions.
What began as a cost-cutting move has evolved into a deep transformation of UPS’s business model, aimed at automation, efficiency, and reduced dependence on low-margin clients like Amazon.
While these steps may strengthen UPS’s financial future, they also mark a turning point for the logistics industry.
These UPS layoffs signal that the era of relentless e-commerce expansion has slowed, and efficiency is the new growth strategy.
