On 29 April 2025, United Parcel Service unveiled a sweeping reorganisation plan that will see 20,000 jobs cut and 73 facilities, both owned and leased, shut down by the end of June this year. It marks one of the most significant workforce reductions in the logistics sector in recent years and comes at a time of shrinking e-commerce volumes, particularly in relation to Amazon. The company has indicated it expects a decline in shipments on behalf of the e-commerce giant, a trend it foreshadowed in January when it announced plans to halve the volume of low-value parcels handled for Amazon within eighteen months.
Through this restructuring, Ups aims to cut costs by $3.5 billion in 2025, equivalent to around €3 billion, while boosting efficiency and profitability. The programme signals a strategic shift, as Ups looks to move away from high-volume, low-margin operations and focus instead on higher-margin shipments, such as those in healthcare, urgent deliveries, or temperature-controlled logistics. In line with this strategy, on 28 April the company announced the acquisition of Canadian firm Andlauer Healthcare, which specialises in healthcare logistics.
The change in strategy reflects the evolving global economic landscape. Following the surge in e-commerce during the pandemic, the logistics sector is now grappling with a slowdown in demand, compounded by uncertainties surrounding US trade policy. Tariffs introduced under President Trump have made international shipping more difficult and volatile, raising costs and undermining the predictability of global supply chains.
Another trend Ups is pursuing is automation. A day before the job cuts announcement, Bloomberg reported that Ups was in discussions with US start-up Figure AI to develop humanoid robots for use in logistics platforms. The report, citing sources close to the two companies, suggested that talks which began in 2024 have intensified in recent months.
In February 2025, Figure AI released a video showing a team of humanoid robots—called Helix and standing about 1.7 metres tall—approaching a sorter conveyor belt, selecting and picking up envelopes and parcels, and moving them onto another belt. The robots are powered by artificial intelligence, which also enables them to self-correct any errors. However, it remains unclear whether this is the specific activity envisioned by Ups, which has not provided details, while Figure AI has declined to comment on the report.
Should Ups finalise the partnership with Figure AI, it would represent one of the first large-scale deployments of humanoids in parcel logistics. This is not, however, the first time the multinational has explored advanced robotics. The company has already partnered with other firms in the field, including Dexterity, which develops industrial robots capable of refined, human-like movements. Additionally, Ups already employs fixed robotic arms and AI-based software in its Velocity logistics centres to manage complex, high-intensity workflows.
Back to the present, on 29 April Ups also released its results for the first quarter of 2025, which showed a slight dip in revenue but improved operational profitability. Consolidated revenue stood at $21.5 billion, around €18.9 billion, down 0.7% from the same period the previous year, while operating profit rose to $1.7 billion, or approximately €1.5 billion, an increase of 3.3%.
The performance varied across different segments. In the United States, Ups benefited from a 4.5% increase in revenue per parcel, especially in air freight, which supported domestic revenue growth to $14.5 billion, roughly €12.7 billion. However, overall shipment volumes declined. Internationally, revenue rose to $4.4 billion, or about €3.8 billion, driven by a 7.1% increase in average daily volume. The international operating margin reached 14.7%, indicating solid performance amid an uncertain economic climate. In contrast, the supply chain solutions division faced a more challenging quarter, with revenue falling 14.8% following the sale of subsidiary Coyote, although the adjusted operating margin held steady at 3.6%.
