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UPS looks to cut up to 30,000 jobs this year

Published  January 27, 2026 2:59pm MST
Business
FOX Local
article

FILE - UPS truck is seen in Miami, United States on May 2, 2024. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

The Brief

    • UPS plans to cut up to 30,000 operational jobs this year as it reshapes staffing and its delivery network.
    • The company is reducing the amount of Amazon volume it carries while prioritizing higher-profit business, including healthcare customers.
    • UPS is also closing facilities, continuing broader cost-cutting efforts from last year, and retiring its MD-11 cargo planes.

UPS is planning to cut up to 30,000 operational jobs this year. 

The package delivery company began a plan to reduce dependency on its largest customer, Amazon. 

UPS aims to focus more on higher profit areas such as healthcare customers.

What they're saying:

"This is a tactical move," UPS Chief Financial Officer Brian Dykes said during a call with analysts. "We did something similar last year in order to help us to right-size the position levels and the network infrastructure with the new volume and delivery levels."

UPS closing locations 

Dig deeper:

In addition to cutting jobs, UPS is closing 24 buildings in the first half of the year, but more could be closed. 

UPS said in a regulatory filing in October that it had cut about 34,000 operational positions and closed daily operations at 93 leased and owned buildings during the first nine months of last year. The company also announced approximately 14,000 job cuts, mostly within management.

According to FactSet, UPS employs about 490,000 workers.

In April, the company announced it was cutting about 20,000 jobs and closing more than 70 facilities. 

UPS and Amazon

Big picture view:

UPS is trying to reduce the number of Amazon shipments it handles, and these ongoing job cuts and closures hope to accomplish this. 

CEO Carol Tome said during the conference call that by the end of 2025 UPS had reduced Amazon’s volume in its network by approximately 1 million pieces per day.

"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," Tome said.

UPS also said it was officially retiring its fleet of McDonnell Douglas MD-11 cargo planes after a deadly crash in Louisville, Kentucky in November. The planes, about 9% of the UPS fleet, had been grounded.

The Source: Information for this article was taken from The Associated Press and previous reporting by FOX Local. 

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