UPS profit beats estimates, to cut 20,000 jobs on economic worries

The parcel giant is not providing any updates to its full-year outlook due to the economic uncertainty

Published Tue, Apr 29, 2025 · 06:51 PM

United Parcel Service reported a better-than-expected profit for its first quarter on Tuesday (Apr 29) and said it will cut 20,000 jobs to control costs against a tough macroeconomic environment, sending its shares up 4 per cent before the bell.

Trade tensions have prompted many companies to hold back on spending, which in turn has lowered the need for services between firms and hurt UPS’ performance in its domestic market.

The parcel giant said it was not providing any updates to its full-year outlook due to the economic uncertainty. Its first-quarter revenue fell to US$21.5 billion from US$21.7 billion a year ago.

The comnpany had in January forecast full-year revenue of US$89 billion and operating margin to be about 10.8 per cent.

Its US domestic segment revenue grew 1.4 per cent to US$14.46 billion in the first quarter, driven by increase in air cargo and improving revenue per piece, even as volumes declined.

UPS postedan adjusted profit per share of US$1.49 compared with expectations of US$1.38, according to data compiled by LSEG. REUTERS

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