UPS layoffs will impact more than 30,000 employees as United Parcel Service moves forward with a major cost-cutting and restructuring plan tied to the end of its lucrative delivery partnership with Amazon. The company says the job reductions are a critical part of a long-term transformation strategy aimed at protecting profitability and strengthening the brand by 2026.
The announcement was made Tuesday alongside UPS’s quarterly earnings report. Speaking to analysts, Chief Financial Officer Brian Dykes explained that the decline in Amazon shipping volumes will significantly reduce operational demand. As a result, UPS plans to cut roughly 25 million operational work hours across its network.
To achieve these savings, the company will eliminate up to 30,000 operational roles, including positions related to package delivery and sorting. Dykes emphasized that the majority of the workforce reduction is expected to occur through attrition, such as voluntary departures, retirements, and roles that are not backfilled.
UPS also plans to launch a second voluntary exit program for full-time drivers, offering an option for those who choose to leave the company. In addition, UPS has confirmed the closure of 24 facilities scheduled for the first half of 2026, which could directly affect employees at those locations. The company noted that further site closures may follow later in 2026, depending on overall business performance.
The move continues a broader network downsizing effort already underway. UPS closed 93 facilities last year, signaling a sustained shift toward a leaner operational footprint. The company is also expanding the use of automation across delivery and sorting centers to lower costs and improve efficiency.
The upcoming layoffs follow substantial job cuts in the previous year. UPS reported eliminating 48,000 positions in 2023, including 34,000 operational roles and 14,000 management jobs. That figure exceeded the company’s initial projection of 20,000 layoffs.
Chief Executive Officer Carol Tomé is leading the restructuring initiative as part of a wider turnaround strategy. UPS confirmed that Amazon, once its largest customer, is no longer a central part of its growth plan, with both companies continuing to scale back their business relationship.
According to UPS, reducing its reliance on Amazon is expected to generate approximately $3 billion in savings. Despite the restructuring plans, the company reported strong fourth-quarter earnings on Tuesday, surpassing Wall Street expectations.