UPS Declares Significant Restructuring: 30,000 Positions to be Phased Out in 2026
On Tuesday, January 27, 2026, United Parcel Service announced plans to eliminate up to 30,000 operational positions this year. This move is part of its ongoing transformation strategy and continued reduction of Amazon shipments.
CFO Brian Dykes revealed during the company’s quarterly earnings call that the job cuts will be accomplished through attrition and a second voluntary separation program for full-time drivers. Additionally, UPS has plans to close 24 buildings in the first half of 2026, with further closures being evaluated for later in the year.
These cuts follow the elimination of 48,000 jobs in 2025 (34,000 operational and 14,000 management positions). CEO Carol Tomé stated that by the end of 2025, UPS had reduced Amazon’s volume in its network by approximately 1 million pieces per day. The company has plans to further reduce Amazon deliveries by another million pieces daily throughout 2026 as part of its “accelerated glide down plan.”
Despite the job cuts, UPS reported fourth-quarter earnings that surpassed Wall Street estimates, citing encouraging progress in its turnaround efforts. UPS anticipates $3 billion in total savings related to the Amazon unwind. The company currently employs approximately 490,000 workers globally. Shares rose 4% in morning trading following the announcement.
Source: CNBC