UPS will cut up to 30,000 jobs this year as it accelerates a strategic retreat from delivering parcels for Amazon, while also closing 24 facilities as part of a sweeping overhaul of its global network.
The company said Amazon deliveries had become “extraordinarily dilutive” to profit margins, even though the online retailer remains its largest customer.
The planned job losses amount to around six per cent of UPS’s global workforce of roughly 490,000 employees, with most reductions affecting staff involved in parcel handling and transportation.
This comes after Amazon themselves mistakenly announced job cuts as part of a wider restructuring plan.
Chief financial officer Brian Dykes said the cuts would be achieved through natural attrition and buyout offers for full‑time drivers.
He confirmed the plans during UPS’s fourth‑quarter earnings call on Tuesday.
UPS is shifting its focus away from low‑margin e‑commerce volumes and towards higher‑value sectors such as healthcare logistics, highlighting vaccine and medical‑product delivery as a growing part of its strategy.
Chief executive Carol Tomé said the company was nearing the end of a planned reduction in Amazon volumes.
“We’re in the final six months of our Amazon accelerated glide‑down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network,” she told analysts.
UPS reached an agreement in principle with Amazon last year to cut the number of parcels it handles for the retailer by more than half by the second half of 2026.
Job losses amount to around six per cent of UPS’s global workforce
|
GETTY
Ms Tomé has previously said Amazon shipments generate weaker returns than other parts of the business.
She said: “Amazon is our largest customer, but it’s not our most profitable customer.
“Its margin is very dilutive to the US domestic business.”
The restructuring extends far beyond the latest round of job cuts, as UPS eliminated 48,000 roles and closed 93 facilities in 2025 as part of efforts to reduce reliance on Amazon.
UPS eliminated 48,000 roles and closed 93 facilities in 2025 as part of efforts to reduce reliance on Amazon
|
GETTY
A further 24 sites will shut in the first half of this year.
Ms Tomé acknowledged the difficulty of deliberately shrinking the business.
“Deliberately shrinking a network is a daunting task,” she said, crediting “disciplined planning, effective execution” and new automation technology for enabling a smaller, more efficient operation.
More than half of UPS’s workforce is represented by the International Brotherhood of Teamsters union.
The restructuring comes as Amazon continues to expand its own delivery network
|
AMAZON PRESS OFFICEUPS reported fourth‑quarter consolidated revenues of $24.5 billion (£17.7billion), beating expectations, and forecast $89.7billion in revenue for the coming year — a figure that surprised some analysts. Shares closed slightly higher in New York on Tuesday.
The restructuring comes as Amazon continues to expand its own delivery network.
The retailer completed 6.3 billion US deliveries in 2024, surpassing both UPS and FedEx.
According to Pitney Bowes’ parcel shipping index, Amazon is on track to overtake the US Postal Service in delivery volumes by 2028.
UPS said it will continue updating investors as the restructuring progresses throughout the year.
