United Parcel Service plans to cut up to 30,000 jobs this year as part of a major cost-cutting effort, company leaders said during an earnings call on Tuesday.
The move is tied to UPS's decision to handle fewer Amazon deliveries and reshape its network to focus on more profitable business.
"In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000," UPS Chief Financial Officer Brian Dykes said.
He explained that the cuts would happen through normal employee departures and a second voluntary separation program for full-time drivers.
Dykes stressed that the changes are meant to better match staffing levels with lower package volumes.
UPS, which is based in Atlanta, employs about 490,000 workers worldwide, AP News reported.
The company said the job reductions are part of a broader plan to lower expenses, streamline operations, and adjust to shifting demand.
Along with workforce cuts, UPS plans to close about 24 buildings in the first half of 2026 and may shut more facilities later in the year. The company is also expanding the use of automation across its delivery network.
The announcement builds on steps UPS has already taken. In April 2025, the company revealed plans to cut 20,000 jobs as it reduced the number of Amazon packages it handled.
In October, UPS said it had already eliminated about 34,000 operational roles and closed daily operations at 93 leased and owned buildings during the first nine months of last year. It also cut roughly 14,000 jobs, mostly in management.
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UPS Speeds Up Plan to Cut Amazon Deliveries
UPS leaders say the changes are linked to a long-term shift away from heavy reliance on Amazon, its largest customer.
According to CBS News, in January 2025, UPS said it reached a deal with Amazon to lower delivery volume by more than 50% by the second half of 2026.
Chief Executive Officer Carol Tome said that by the end of 2025, UPS had reduced Amazon shipments by about 1 million packages per day.
"We're in the final six months of our Amazon accelerated glide down plan," Tome said during the call.
She added that in 2026, UPS expects to cut another 1 million Amazon packages per day while continuing to reshape its network.
UPS says these moves are helping the company save money. Tome noted that consolidation efforts led to $3.5 billion in savings last year.
The company is now focusing more on higher-margin areas, including healthcare deliveries.
UPS also confirmed it is retiring its fleet of McDonnell Douglas MD-11 cargo planes. The aircraft, which made up about 9% of the fleet, had been grounded following a deadly crash in Louisville, Kentucky, last November.
After the announcement, shares of United Parcel Service Inc. rose 3.4% in afternoon trading.
Originally published on vcpost.com
