Part 8/11:
The company has also offered early retirement packages to drivers, which has been well-received and designed to facilitate workforce reductions through attrition rather than layoffs. The estimated cost savings from these measures are impressive: UPS has already achieved around $2.2 billion of the projected $3.5 billion expense cuts planned for 2025, with the full benefits expected within the year.
Furthermore, automation technology has been scaled significantly, with approximately 66% of packages now passing through automated facilities—a substantial increase from last year. The continuous adoption of advanced technology and process modernization aims to further reduce reliance on human labor, lowering operational costs while maintaining service quality.