UPS Q1 earnings beat expectations, announces job cuts and building closures
By Iain Gilbert
Date: Tuesday 29 Apr 2025
(Sharecast News) - Shipping courier United Parcel Service revealed on Tuesday that quarterly earnings had come in ahead of Wall Street expectations but also announced plans to cut its workforce by 20,000 jobs and shutter multiple buildings in 2025 to offset an expected reduction in Amazon volumes and economic uncertainty stemming from Donald Trump's "Liberation Day" tariffs.
UPS said net income rose 6.6% in the three months ended 31 March $1.19bn, while adjusted earnings per share increased to $1.49 from $1.43, beating estimates of $1.38 per share.
Revenues were down 0.7% at $21.5bn, with domestic-package revenue up 1.4% to $14.46bn and international revenue growing 2.7% to $4.37bn to somewhat offset a 14.8% drop in supply-chain-solutions revenue to $2.71bn.
UPS, which has previously expected FY25 revenues of roughly $89.0bn, chose not to update its guidance "given the current macro-economic uncertainty" but did announce that it has begun a "network configuration" that will involve cutting roughly 4% of its workforce and closing 73 leased and owned buildings by the end of 2025 in anticipation of the loss of volume from its largest customer, Amazon.
As a result, UPS expects to record between $400.0m and $500.0m in expenses, including building closures and employee severance benefits.
As of 1515 BST, UPS shares were down 0.12% at $96.96
Reporting by Iain Gilbert at Sharecast.com
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