United Parcel Service (UPS) Axes 48,000 Jobs & Ditches Amazon; What’s Next?

United Parcel Service (UPS) delivered its third quarter 2025 financial performance amidst significant strategic shifts and operational challenges. The company reported consolidated revenue of $21.4 billion, with an adjusted operating profit of $2.1 billion, reflecting an operating margin of 10%. A focus on revenue quality and cost management was evident as UPS navigated complex changes in both U.S. and international markets. In the domestic segment, UPS faced a decline in U.S. average daily volume, mainly due to a planned reduction of Amazon volumes and lesser e-commerce activity. However, strategic improvements in volume mix and discipline in revenue quality yielded a 9.8% increase in revenue per piece, allowing the U.S. operating margin to edge up by 10 basis points. On the expense side, UPS demonstrated effective cost control by reducing operational hours and positions, with a 10.4% increase in cost per piece attributed to contractual wage increases and operational changes.