Bundle-delivery large targets financial savings of $3bn in 2026 amid push to slash deliveries for Amazon.
Printed On 28 Jan 2026
United Parcel Service, one of many world’s largest package-delivery firms, has introduced plans to slash as much as 30,000 jobs amid a push to chop prices and enhance earnings.
UPS, primarily based within the US state of Georgia, will make the cuts as a part of efforts to realize financial savings of $3bn in 2026, UPS chief monetary officer Brian Dykes stated on an earnings name on Tuesday.
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Dykes stated the job cuts, a part of plans to cut back UPS’s reliance on deliveries for its largest buyer, Amazon, could be achieved by way of attrition and voluntary buyouts.
“We count on to supply a second voluntary separation programme for full-time drivers,” Dykes stated.
UPS may also shut 24 buildings within the first half of the yr and consider different buildings for closure within the second half, Dykes stated.
He stated the financial savings could be on high of $3.5bn in financial savings achieved in 2025 by way of cost-cutting measures, together with the elimination of 26.9 million labour hours and the closure of 93 buildings.
Sean O’Brien, president of the Teamsters union, slammed the job cuts in a press release posted on social media.
“Company vultures giggled about giving their disrespectful driver buyout program one other shot,” O’Brien stated.
“Reminder: Teamsters overwhelmingly rejected UPS’s insulting payoff final yr. We nonetheless know our price. Drivers nonetheless endure violent winters and brutal warmth to make UPS its billions. UPS should honor our contract and reward our members.”
UPS introduced final yr that it could scale back shipments for Amazon by half as a part of plans to concentrate on a smaller quantity of extra profitable deliveries.
The agency’s reported revenues of $24.5bn for the ultimate three months of 2025, taking earnings for the yr to $88.7bn, and projected revenues in 2026 are anticipated to hit $89.7bn.
UPS shares had been largely unmoved on Tuesday, closing 0.22 % increased.
