UPS beat Wall Street’s profit expectations last quarter, driven not by stronger demand but by deep cost cuts. The company eliminated 34,000 jobs and closed 93 facilities—a 70 percent increase from earlier projections—reflecting a broad restructuring aimed at stabilizing margins after a period of sluggish growth and rising expenses.
Chief commercial officer Matt Guffey describes the effort as a structural transformation rather than a short-term fix. It includes a reorientation of UPS’s business model, shifting away from low-margin e-commerce deliveries toward industrial, healthcare, and supply-chain clients that offer steadier, higher-value contracts.
