UPS plans to cut up to 30,000 jobs in 2026 as it continues to scale back deliveries for Amazon, a move the parcel delivery company says is aimed at reducing exposure to shipments that pressure profit margins.
Job Cuts Tied To Changes In Customer Mix
UPS said the reductions will be carried out through voluntary buyout offers to full-time drivers and by not replacing employees who leave the company on their own. The company has described shipments for its largest customer, Amazon, as “extraordinarily dilutive” to profitability.
UPS has been gradually reducing its dependency on Amazon as part of a turnaround plan announced last year. The strategy includes shifting attention toward customers with higher margins, including healthcare companies.
Financial Results And Revenue Outlook
The workforce announcement came alongside UPS’s latest earnings report. For the final three months of last year, the company reported earnings of $24.5bn, or £17.7bn. It also forecast revenue of $89.7bn for the year ahead, a projection that exceeded expectations.
Facility Closures And Network Changes
The planned job cuts follow significant reductions made in 2025, when UPS eliminated 48,000 positions and closed 93 facilities as Amazon volumes declined. The company said it will close another 24 facilities during the first half of this year.
Chief executive Carol Tomé said the company is nearing the end of its current effort to reduce Amazon shipments. “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,” she said.
Workforce Profile And Union Structure
According to UPS’s 2024 annual report, the company employed about 490,000 people, with nearly 78,000 working in management roles. The workforce is unionised, which influences how staffing changes are implemented.
MD-11 Cargo Aircraft Retirement
UPS also announced the official retirement of its MD-11 cargo aircraft fleet following a fatal crash in Louisville, Kentucky, in November. The MD-11 planes represented about 9% of the company’s fleet and had been grounded since the accident.
UPS shares closed slightly higher in New York trading on Tuesday.
Featured image credits: New Georgia Encyclopedia
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