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United Parcel Service (UPS) is planning to eliminate as many as 30,000 jobs this year as the delivery giant continues its multiyear turnaround strategy and phases out work for former top customer Amazon.
The reductions will come through attrition and include a voluntary separation program for full-time drivers. The company has tied the bulk of the changes to a significant decrease in operational volume from Amazon and broader cost-saving initiatives.
Chief Financial Officer Brian Dykes told analysts on a Tuesday earnings call that UPS plans to reduce total operational hours by roughly 25 million associated with declining Amazon activity.
He said: “In terms of variable costs, we expect to reduce operational positions by up to 30,000. This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers.”
The company expects $3billion in savings from the Amazon unwind.
Past workforce actions and facility strategy
The upcoming reductions follow significant cutbacks last year, when the company eliminated 48,000 jobs. Some 34,000 were operational roles while 14,000 were management roles, outpacing previous estimates of roughly 20,000 reductions. UPS leadership said it intends to “further deploy automation” across its network as part of the turnaround effort under CEO, Carol Tomé.
Workforce changes are also being paired with infrastructure consolidation. UPS told investors it has identified 24 buildings for closure in the first half of 2026, noting that additional closures may follow later in the year. The company reminded analysts that it shuttered 93 buildings last year.
Labor relations will be closely monitored. The International Brotherhood of Teamsters said Tuesday that unionized workers “still know [their] worth” if buyouts return.
A union statement added: “We’re perfectly happy for UPS to realize growth and cost savings on the backs of corporate managers so long as they uphold their contractual commitments to our members and reward the Teamsters who actually make the company run.”
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Turnaround aims to reset operations without Amazon volume
Amazon was previously the company’s largest customer, yet both companies are stepping down their relationship in stages. UPS executives described the process as a "glide path" that reduces dependency on the e-commerce marketplace. Leadership said the financial savings attached to the Amazon unwind are central to the turnaround plan, which seeks to reinvigorate performance after a period of cost pressure and structural change.
The UPS turnaround plan continues to evolve under Tomé, bringing automation, facility consolidation, and workforce restructuring into focus as the company looks to reshape its operational footprint.
