UPS layoffs: Logistics giant posts stronger-than-expected Q2 results after cutting 48,000 jobs

United Parcel Service (UPS) has reported stronger-than-expected second-quarter results after completing an 18-month restructuring programme that eliminated 48,000 jobs, reduced low-margin business and accelerated automation across its operations.

According to the company's latest earnings announcement, UPS posted consolidated revenue of $22.8 billion and an operating profit of $930 million for the second quarter. The results exceeded Wall Street expectations, marking a milestone in the company's turnaround efforts.

The earnings update follows a period of significant operational changes aimed at improving efficiency and lowering costs.

Restructuring reshaped the business

The transformation programme included several operational changes designed to improve profitability and streamline the company's network.

According to UPS, the restructuring involved:

• Eliminating 48,000 jobs through its Driver Choice Program
• Reducing low-margin Amazon shipping volumes
• Reconfiguring its logistics network to support greater automation
• Continuing investments in artificial intelligence to improve operational efficiency

The company said the broader initiative is expected to generate $3 billion in cost savings by the end of 2026.

Revenue and profit exceed expectations

The second-quarter performance reflected the early impact of the restructuring programme.

Key financial highlights included:

• Consolidated revenue: $22.8 billion
• Operating profit: $930 million
• Full-year revenue guidance: Raised by the company following the quarterly results

According to the earnings release, employee separation costs linked to workforce reduction initiatives under the Driver Choice Program contributed to the reported results.

CEO says transformation is delivering results

Commenting on the quarter, Carol Tomé, Chief Executive Officer of UPS, said the company has entered the second half of the year with stronger momentum.

"We entered the second half of the year with strong momentum and are raising our full-year consolidated revenue," she said in the company's press release.

Speaking during the analyst call, Tomé added, "We now have a leaner, more automated, more agile network that will deliver operating leverage as volume grows."

In a separate interview with CNBC, she said the early stages of the company's transformation came with operational challenges before stabilising in the latest quarter.

According to Tomé, "We have returned our company to revenue and profit growth, and that's the guidance that we gave for this year."

Automation remains central to the strategy

Alongside workforce reductions, UPS continues to increase investment in automation and artificial intelligence as part of its long-term operating strategy.

The company said these initiatives are intended to streamline logistics operations, improve network efficiency and support its cost-saving target through 2026.

The restructuring also reflects a broader trend across logistics and transportation companies, where automation and AI are playing a larger role in operational planning while businesses seek to improve productivity and manage costs.

For UPS, the latest quarterly performance suggests its restructuring programme is beginning to translate into stronger financial results, even as the company continues reshaping its workforce and logistics network.