"The problem wasn't the earnings; it was the job cuts. The company announced it would eliminate 48,000 positions in management and operations. This represents roughly 6.5% of its total workforce. CEO Carol Tomé framed it as "executing the most significant strategic shift in our company's history," but retail investors read it differently. They saw cost-cutting masquerading as operational excellence. They saw a company contracting, not growing."
"Yet within hours, that narrative evaporated. The underlying fundamentals reinforced those concerns. UPS reported earnings down 14.1% and year-over-year and revenue down 3.7%. The U.S. domestic segment, the company's core business, declined 2.6% on lower volume. Supply Chain Solutions revenue plummeted 22.1% due to divestitures. This wasn't a company firing on all cylinders. This was a company under pressure, cutting aggressively to defend margins."
UPS reported a headline-beating quarter with non-GAAP EPS of $1.74 versus $1.31 expected and $21.40 billion in revenue versus $21.04 billion expected. The company simultaneously announced elimination of 48,000 positions, roughly 6.5% of its workforce, framed by CEO Carol Tomé as a major strategic shift. Underlying results showed weakness: earnings down 14.1% year-over-year, revenue down 3.7%, U.S. domestic volume down 2.6%, and Supply Chain Solutions revenue down 22.1% after divestitures. Retail investor sentiment plunged from about 70–75/100 to as low as 24/100 after the job-cut announcement.
Read at 24/7 Wall St.
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