Cost reductions tied to operational overhaul
United Parcel Service announced Tuesday that it plans to cut up to 30,000 additional jobs this year as part of its ongoing effort to scale back its relationship with Amazon and execute a broader multiyear turnaround strategy.
The decision follows UPS’s quarterly earnings release, during which executives outlined further steps to reduce costs and streamline operations as volumes linked to Amazon decline.
Operational hours and workforce to shrink
Chief Financial Officer Brian Dykes said the company expects to reduce total operational hours by approximately 25 million as Amazon-related business winds down.
He added that workforce reductions will focus primarily on operational roles and will be carried out largely through attrition. UPS also plans to offer a second voluntary separation program for full-time drivers.
Facility closures and automation expansion
UPS said it has identified 24 facilities slated for closure in the first half of 2026, with the possibility of additional shutdowns later in the year. In 2025, the company closed 93 buildings as part of earlier restructuring efforts.
The company is also accelerating the deployment of automation across its logistics network, a move executives say will help improve efficiency and reduce long-term operating costs.
Layoffs follow major reductions in 2025
The planned cuts come on top of the 48,000 jobs UPS eliminated last year, including 34,000 operational roles and 14,000 management positions. Those reductions exceeded the company’s earlier estimates.
Union reaction was measured. A representative for the Teamsters said union members remain confident in their value and emphasized that any cost savings should not come at the expense of contractual obligations to workers.
Turnaround plan shows early progress
UPS is pursuing a turnaround under Chief Executive Officer Carol Tomé, aiming to stabilize margins and reposition the business after years of volume volatility. While Amazon was once the company’s largest customer, UPS expects the wind-down of that partnership to generate approximately $3 billion in savings.
The company reported fourth-quarter earnings that exceeded Wall Street expectations, citing early signs of progress in its restructuring efforts. Shares of UPS rose about 4% in morning trading following the announcement.
