UPS layoffs: Delivery giant to cut 30,000 jobs — who’s most likely to be hit and what employees should know

More than 30,000 jobs are on the chops at United Parcel Service, also called UPS, after the delivery company gave its layoff announcement on Tuesday as its lucrative delivery partnership with Amazon heads to a closure. The company however claims that the layoffs were much needed as it looked to a futuristic turnaround to insulate the brand from losses come 2026.

UPS Chief Financial Officer Brian Dykes spoke to analysts after the company released its quarterly earnings, as stated by CNBC. He explained why the cuts are needed. Brian Dykes said UPS will reduce about 25 million total operational work hours because Amazon shipments are declining. He said that to reduce costs, UPS plans to cut up to 30,000 operational jobs, which include jobs directly linked to delivery and sorting.

UPS job cuts plan

Brian Dykes said most job losses will happen through attrition, meaning workers leaving on their own, retiring, or not being replaced.UPS said it plans to offer a second voluntary exit program for full-time drivers. This program is for drivers who choose to leave the company on their own. UPS said it has already selected 24 buildings to be closed. These buildings will close in the first half of 2026. Workers at these locations may be affected.


The company said more buildings could close later in 2026. This will depend on how the business performs. UPS reminded investors that it closed 93 buildings last year. This shows that the company has already started reducing its network, as per CNBC report. UPS also said it will use more automation. Automation will be used in delivery and sorting centers. The goal is to cut costs and work more efficiently.

UPS layoffs history

UPS said the new job cuts are happening after many jobs were already cut last year. The company said it removed 48,000 jobs across the company last year. Out of these, 34,000 jobs were operational roles. The other 14,000 jobs were management roles. UPS said it first thought it would cut about 20,000 jobs. But the final number of job cuts was much higher than expected. The company is now working on a turnaround plan.

This plan is being led by CEO Carol Tomé. The goal of the plan is to make the business stronger. UPS said Amazon was once its biggest customer. Now, UPS and Amazon are slowly reducing business with each other. UPS said it expects to save about $3 billion by winding down its operations with Amazon, as cited by CNBC. UPS reported its fourth-quarter earnings on Tuesday and said the results were better than what Wall Street expected.

UPS stock and employees

The company said its earnings report shows that its business is getting better. The company said its plan to fix problems is working slowly. After this news, UPS shares went up by almost 2% in morning trading. This shows that investors feel more confident about the company. UPS said some workers may be affected by job cuts.

These workers include operational staff and some drivers who choose to leave on their own. Employees working in buildings that will be closed may also be affected. UPS said the job cuts will happen slowly over time. The layoffs will not happen all at once. The company also said more changes could continue until 2026.

FAQs

Q1. Why is UPS cutting 30,000 jobs?

UPS is cutting jobs because it is reducing work with Amazon and trying to lower costs under its long-term business plan.

Q2. Who will be most affected by UPS layoffs?

Operational workers, some drivers choosing voluntary exits, and employees at closing facilities are most likely to be affected.