United Parcel Service plans to cut up to 30,000 jobs this year as part of an aggressive effort to rein in costs and streamline operations, company executives said during an earnings call Tuesday.
UPS Chief Financial Officer Brian Dykes said the reductions will focus on what the company calls semi-variable costs, primarily operational positions across its network.
“In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000,” Dykes said. He added that the cuts will be carried out largely through attrition, along with a second voluntary separation program aimed at full-time drivers.
In addition to workforce reductions, UPS plans to close roughly two dozen facilities in the first half of 2026 and expand the use of automation throughout its delivery network. Those moves are part of a broader consolidation strategy designed to lower expenses and improve efficiency.
Based in Atlanta, UPS employs about 490,000 people worldwide, making the planned job cuts one of the most significant workforce reductions in the company’s history.
The latest announcement accelerates changes UPS began after deciding to sharply reduce the number of packages it delivers for Amazon, its largest customer. In 2025, UPS said it would cut Amazon deliveries by 50% by the second half of 2026, a shift that has reshaped the company’s logistics footprint.
UPS Chief Executive Carol Tome said Tuesday that the company saved $3.5 billion last year through consolidation and efficiency measures tied to that strategy. The job cuts and facility closures announced this week are expected to add to those savings.
UPS has already taken similar steps over the past year. In April 2025, the company disclosed plans to eliminate 20,000 jobs as Amazon volumes declined and facilities were consolidated. At the time, UPS said the changes were necessary to align staffing levels with a smaller package volume and a more automated network.
Source: CBS News