Sandy Springs-based UPS plans to close more buildings and stores and continue its buyout severance program for its U.S. drivers as it looks to reach $3.5 billion in expected savings in 2025.
The logistics company has already closed 74 buildings, UPS CEO Carol Tomé said during the company’s earnings call on July 29. Those closures included a Sandy Springs office building. Staff attrition has been lower than anticipated.
In July, UPS announced a voluntary buyout program for all full-time U.S. drivers. UPS Chief Financial Officer Brian Dykes said 85 percent of the thousands of UPS drivers are at the top end of the pay scale, with 25 to 40 years of service.
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• UPS closes Sandy Springs office building, relocates 500 employees
The company continues its Amazon glide-down program, a plan to decrease the volume of Amazon deliveries in favor of profitability.
UPS reported its second quarter earnings with revenue of $21.2 billion and operating profit of $1.9 billion, an 8.8 percent operating margin.
Trade policies have been followed with a 34.8 percent drop in China-U.S. trade. Consumer sentiment also affected the business. Dykes said growth by more than 20 percent of shipping from China to the rest of the world partially offset this decline.
“Despite uncertainties around trade policies. In the second quarter, the overall U.S. economy demonstrated continued resilience. But our sector, specifically the U.S. small package market, was unfavorably impacted by U.S. consumer sentiment that was near historic lows,” Tomé said.
Those factors contributed to UPS seeing a 7.3 percent decrease in U.S. average daily volume in its shipments, according to Tomé.
The company’s international revenue increased 2.6 percent, driven by a 3.9 percent increase in average daily volume.
The decline in the air and ocean freight was driven by changes in tariffs that resulted in demand softness and lower market rates, Dykes said. Healthcare logistics grew revenue by 5.7 percent, and Tomé said the company was laser-focused on that market.
In the earnings call, UPS announced second-quarter 2025 consolidated revenues of $21.2 billion. Consolidated operating profit was $1.8 billion; $1.9 billion on a non-GAAP (generally accepted accounting principles) adjusted basis. Diluted earnings per share were $1.51 for the quarter; non-GAAP adjusted diluted earnings per share were $1.55.
The uncertainty in tariff and trade changes, potential impacts on consumer behavior, and other factors led UPS to announce it would not provide any forward-looking revenue or operating profit guidance in its earnings call.
