UPS Unveils Plan to Slash 30,000 Jobs in Drive for Cost Savings and Profit Boost
In a move aimed at reducing costs and increasing profits, the world's largest package delivery company, United Parcel Service (UPS), has announced plans to cut up to 30,000 jobs. The plan is part of UPS's efforts to achieve savings of $3 billion by 2026.
The job cuts will be implemented through attrition and voluntary buyouts, with a second voluntary separation program for full-time drivers expected to be offered. In addition to the job losses, UPS plans to shut down 24 buildings in the first half of the year and evaluate other buildings for closure in the second half.
UPS's push to cut costs has been driven by its largest customer, Amazon. The company announced last year that it would reduce shipments for Amazon by half as part of a plan to focus on a smaller volume of more lucrative deliveries.
The move has been met with criticism from labor unions, including the Teamsters union, which has slammed UPS's job cuts as "corporate vultures" and called on the company to honor its contract with drivers. Despite the backlash, UPS shares were largely unaffected by the news, closing 0.22 percent higher.
As part of its cost-cutting efforts, UPS reported revenues of $24.5 billion for the final three months of 2025, taking earnings for the year to $88.7 billion. The company projects revenues in 2026 will hit $89.7 billion.
In a move aimed at reducing costs and increasing profits, the world's largest package delivery company, United Parcel Service (UPS), has announced plans to cut up to 30,000 jobs. The plan is part of UPS's efforts to achieve savings of $3 billion by 2026.
The job cuts will be implemented through attrition and voluntary buyouts, with a second voluntary separation program for full-time drivers expected to be offered. In addition to the job losses, UPS plans to shut down 24 buildings in the first half of the year and evaluate other buildings for closure in the second half.
UPS's push to cut costs has been driven by its largest customer, Amazon. The company announced last year that it would reduce shipments for Amazon by half as part of a plan to focus on a smaller volume of more lucrative deliveries.
The move has been met with criticism from labor unions, including the Teamsters union, which has slammed UPS's job cuts as "corporate vultures" and called on the company to honor its contract with drivers. Despite the backlash, UPS shares were largely unaffected by the news, closing 0.22 percent higher.
As part of its cost-cutting efforts, UPS reported revenues of $24.5 billion for the final three months of 2025, taking earnings for the year to $88.7 billion. The company projects revenues in 2026 will hit $89.7 billion.