United Parcel Service (UPS) announced plans to significantly scale back its workforce this year, aiming to cut up to 30,000 operational jobs as part of a broader effort to boost turnaround and enhance profitability.
The move is part of UPS's ongoing strategy to pivot towards higher-margin shipments, which the company believes will help it stabilize volumes following the end of US duty-free, "de minimis" low-value e-commerce shipments. The shift in focus comes on the heels of a tumultuous year marked by job cuts, facility closures, and significant investments in cost-cutting measures.
In 2025 alone, UPS reduced its workforce by 48,000 jobs through a combination of layoffs and buyouts, while also closing operations at 93 facilities as part of its efforts to target $3 billion in annual savings by 2026. The company has already launched multiple initiatives aimed at rebuilding profitability and reducing costs.
Despite the latest move to trim its workforce, UPS reported stronger-than-expected quarterly earnings and projected a surprise rise in annual revenue for 2026. However, shares dipped 1% in premarket trading following the announcement, as investors took on board the implications of the company's significant job cuts.
The decision to cut such a substantial number of jobs underscores the growing challenges facing the logistics industry as it navigates changing consumer behavior and shifting global trade dynamics. As UPS seeks to adapt and thrive in this environment, its workforce reduction efforts will undoubtedly be closely watched by analysts and investors alike.
The move is part of UPS's ongoing strategy to pivot towards higher-margin shipments, which the company believes will help it stabilize volumes following the end of US duty-free, "de minimis" low-value e-commerce shipments. The shift in focus comes on the heels of a tumultuous year marked by job cuts, facility closures, and significant investments in cost-cutting measures.
In 2025 alone, UPS reduced its workforce by 48,000 jobs through a combination of layoffs and buyouts, while also closing operations at 93 facilities as part of its efforts to target $3 billion in annual savings by 2026. The company has already launched multiple initiatives aimed at rebuilding profitability and reducing costs.
Despite the latest move to trim its workforce, UPS reported stronger-than-expected quarterly earnings and projected a surprise rise in annual revenue for 2026. However, shares dipped 1% in premarket trading following the announcement, as investors took on board the implications of the company's significant job cuts.
The decision to cut such a substantial number of jobs underscores the growing challenges facing the logistics industry as it navigates changing consumer behavior and shifting global trade dynamics. As UPS seeks to adapt and thrive in this environment, its workforce reduction efforts will undoubtedly be closely watched by analysts and investors alike.
They're not just cutting jobs, they're cutting people's livelihoods too! My cousin works for UPS as a delivery driver and is totally stressed about his future now. The company says it needs to boost profitability, but isn't that just code for "we can cut costs, no matter what"? It feels like big corporations are always putting profits over people, and I don't get why we can't have a more balanced approach. 
I get that the logistics industry is changing and they need to pivot to higher-margin shipments, but can't they find ways to do it without such a huge hit to their employees? 
. They've got some good news on the books for 2026, but we'll have to wait and see if that translates into more job security for their remaining employees.
. Like they gotta stay competitive with changing market right? 
But on the other hand, cutting costs can be a good thing for shareholders 
. Its like, what happens to all those packages when it goes down this way 