UPS Profit Drops, Offers Driver Buyouts Amid Turmoil

United Parcel Service (UPS) reported a 2.7% decline in second-quarter 2025 revenue to $21.2 billion, with adjusted earnings per share falling to $1.55, missing analyst expectations. The company attributed the downturn to weak consumer sentiment, increased delivery expenses, and major volume declines in U.S.-China trade following new tariffs and the removal of the de minimis exemption. UPS withheld its full-year revenue and profit guidance for the second consecutive quarter, citing ongoing macroeconomic and trade policy uncertainty. While U.S. domestic and supply chain revenues fell, international segment growth partially offset the declines, but overall package volumes continued to decrease. As part of a $3.5 billion cost-saving initiative, UPS has offered buyouts to delivery drivers for the first time and is restructuring its network to adapt to reduced parcel volumes. Shares dropped sharply after the earnings release, highlighting persistent challenges for UPS and the logistics sector.