UPS to Cut 30,000 Jobs in 2026, Scaling Back Amazon Deliveries and Closing Facilities

As part of its cost-cutting efforts, United Parcel Service intends to lay off up to 30,000 employees this year, according to the company's CFO. In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000, UPS CFO Brian Dykes stated during the company's earnings call. This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers. UPS says the job losses will be handled through buyout offers to full-time drivers and not replacing employees who leave the firm willingly. UPS announced 48,000 job losses last year, 34,000 of which were operational and 14,000 of which were managerial. In April 2025, UPS announced that it would shed 20,000 jobs as it delivered fewer Amazon deliveries. According to its 2024 annual report, UPS employed around 490,000 people, with nearly 78,000 working in management. The company has a unionized workforce. Why This News Matters, This is one of the biggest changes to the UPS workforce in history. It will directly affect tens of thousands of workers and their families. The size of the cuts shows how serious UPS is about changing its business as it gets away from low-margin work with Amazon. The company is making a lot of money and expects to make even more, but the job cuts show that it is making a big shift towards making more money, automating processes, and getting fewer but more profitable customers. For workers and unions, it brings up new worries about job security during a time of corporate change, even though investors have liked the lower costs. Amazon Relationship and Delivery Reductions, The world's largest package delivery provider has reduced deliveries to the online retail giant, claiming they are extraordinarily dilutive to its profit margins. Last year, UPS announced that it will begin to lessen its reliance on Amazon as part of a rescue strategy that would see the business focus on more profitable customers such as healthcare providers. The move accelerates UPS's efforts to combine its facilities and workers as part of its commitment to deliver fewer Amazon deliveries. In 2025, the corporation set a goal to reduce Amazon delivery by 50% by the second half of 2026. We're in the final six months of our Amazon accelerated glide down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network, Carol Tomé, CEO, stated. UPS is now undergoing a turnaround plan led by CEO Carol Tomé, with the goal of reinvigorating the business. UPS said on Tuesday that it expects to save $3 billion as a result of the Amazon unwind.