UPS reported third-quarter earnings that beat Wall Street’s expectations, with adjusted earnings per share at $1.74 compared to $1.30 expected and revenue at $21.4 billion versus $20.83 billion expected. The company also announced a workforce reduction of 34,000 jobs as part of its turnaround plan to cut ties with Amazon, its former largest customer.

The company’s net income for the period ended Sept. 30 was $1.31 billion, or $1.55 per share, down from $1.99 billion, or $1.80 per share, the year before. UPS estimates fourth-quarter revenue to be $24 billion with an operating margin of 11% to 11.5%, and expects total year-over-year cost savings of $3.5 billion in 2025.

UPS initiated a sale-leaseback transaction for five properties in the third quarter, resulting in a $330 million pre-tax gain. The company has closed daily operations at 93 leased and owned buildings through September as part of its cost-saving initiative, which has already achieved $2.2 billion in savings through the end of the third quarter.

CEO Carol Tomé stated that UPS is undergoing a significant strategic shift to deliver long-term value, positioning the company for an efficient holiday shipping season and continued industry-leading service. These changes come as the courier industry faces challenges from a volatile tariff environment and sluggish demand, along with impacts from the end of the de minimis shipping exemption.

Read more at CNBC: UPS Earnings Q3 2025