UPS Plans to Cut Up to 30,000 Jobs

Package delivery giant to reduce workforce, mainly in delivery and warehouse roles, as it retreats from Amazon deliveries

Jan. 28, 2026 at 12:23pm

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United Parcel Service (UPS) announced plans to eliminate up to 30,000 jobs in 2026, primarily in delivery and warehouse positions, as the company looks to cut costs and improve profits. This follows a larger reduction of 62,000 jobs in 2025, including full-time drivers, warehouse staff, managers, and seasonal workers. The cuts are tied to UPS' planned pullback from its largest customer, Amazon, which the company says has not been a profitable relationship.

Why it matters

The job cuts at UPS reflect broader trends in the logistics and delivery industry, with companies like FedEx and Amazon also scaling back operations and staffing amid weakening demand and economic uncertainty. The restructuring at UPS highlights the challenges facing traditional package delivery firms as they navigate shifting consumer habits and increased competition from e-commerce giants.

The details

UPS Chief Financial Officer Brian Dykes said the job cuts will target "operational positions" and come mainly through attrition and voluntary buyouts for full-time drivers. The company is also shrinking its physical footprint, closing 93 facilities in 2025 and planning to shut down 24 more in the first half of 2026. UPS is leaning more heavily on automation as it restructures. Despite the job cuts and profit declines, UPS shares have risen more than 35% from last year's low, though they remain 18% lower over the past 12 months.

  • In 2025, UPS shed 62,000 positions, including full-time drivers, warehouse staff, managers, and seasonal workers.
  • UPS began 2025 with roughly 500,000 employees, including about 300,000 Teamsters.
  • In 2025, UPS closed 93 facilities and added automation at nearly five dozen more.
  • In the first half of 2026, 24 additional UPS buildings are slated to shut, with more possible.

The players

United Parcel Service (UPS)

A global package delivery company and one of the largest logistics providers in the world.

Brian Dykes

The Chief Financial Officer of UPS.

Teamsters

The labor union representing about 300,000 UPS employees.

Carol Tome

The CEO of UPS.

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What they’re saying

“This is a tactical move.”

— Brian Dykes, Chief Financial Officer, UPS (Associated Press)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

The job cuts at UPS reflect the broader challenges facing traditional logistics and delivery companies as they navigate shifting consumer habits, increased competition, and economic uncertainty. The restructuring highlights the need for these firms to adapt their operations and workforce to remain competitive in a rapidly evolving industry.