MW UPS to cut 20,000 jobs, close dozens of buildings due to lower Amazon volumes

By Tomi Kilgore

UPS's stock jumps after earnings beat expectations, but full-year outlook wasn't updated given economic uncertainties

Shares of United Parcel Service Inc. surged in early trading Tuesday, after the package-delivery giant's earnings beat Wall Street expectations, which offset announced plans to cut 20,000 jobs this year due to the loss of Amazon volume.

The company also said it would not update its full-year outlook "given the current macro-economic uncertainty." The company had previously said it expected 2025 revenue of $89 billion.

The stock $(UPS)$ rallied 2.5% in premarket trading.

UPS said it began a "network configuration" that will lead to consolidations of its workforce and facilities, in anticipation of the loss of volume from its largest customer, Amazon.com Inc. $(AMZN)$.

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That will include cutting about 20,000 jobs, or roughly 4% of its workforce, in 2025. The company will close 73 leased and owned buildings by the end of the year.

UPS said it expects total cost savings from its consolidation of $3.5 billion in 2025. Additional buildings may be closed as it continues to review its network.

Due to its actions, UPS expects to record between $400 million and $500 million in expenses, including building closures and employee severance benefits. The job cuts may also lead to a "re-measurement" of its pension plan obligations, but UPS could not yet determine the impact.

For the first quarter to March 31, net income rose 6.6% from the same period a year ago to $1.19 billion. Adjusted earnings per share, which excludes nonrecurring items, increased to $1.49 from $1.43, and beat the average analyst estimate compiled by FactSet of $1.38.

Revenue slipped 0.7% to $21.5 billion, but was above the FactSet consensus of $21.0 billion.

Domestic-package revenue grew 1.4% to $14.46 billion, above the FactSet consensus of $14.15 billion, and international revenue was up 2.7% to $4.37 billion, beating expectations of $4.25 billion.

That offset a 14.8% drop in supply-chain-solutions revenue to $2.71 billion, due primarily to the divestiture of its Coyote business. That was in line with expectations.

UPS's stock has dropped 23% in 2025 through Monday, while the S&P 500 index SPX has lost 6%.

-Tomi Kilgore

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April 29, 2025 07:05 ET (11:05 GMT)

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