Jake Lacks's questions to United Parcel Service Inc (UPS) leadership • Q2 2025
Question
Jake Lacks from Wolfe Research asked if the employee buyout program costs are included in the $3.5 billion savings plan, sought an early indication of the program's potential size, and requested an update on the 'Efficiency Reimagined' initiative's outlook for 2026.
Answer
CFO Brian Dykes confirmed the driver separation package is a key lever to achieve the $3.5 billion savings target by accelerating planned attrition. Regarding 'Efficiency Reimagined,' he noted a significant ramp-up in Q2 that will continue through the second half of the year and is expected to generate a similar level of savings in 2026. CEO Carol Tomé added that while it's too early to provide specific numbers on the driver buyout, it is progressing as expected.