UPS Plans 30,000 Job Cuts as It Reduces Amazon Deliveries
Global parcel delivery firm UPS has announced plans to cut up to 30,000 jobs this year as it continues to scale back business with Amazon, its largest customer.
The company said the reductions will be carried out mainly through voluntary buyouts for full-time drivers and by leaving vacant positions unfilled, rather than through widespread layoffs. UPS has been deliberately reducing shipments for Amazon, describing the business as highly volume-heavy but weak on profitability.
The announcement came alongside the company’s latest financial results, which showed revenue of $24.5 billion for the final quarter of last year. UPS also projected revenue of $89.7 billion for the year ahead, a forecast that exceeded market expectations.
The move forms part of a broader restructuring strategy unveiled last year, aimed at lowering the company’s reliance on Amazon and shifting focus toward higher-margin sectors such as healthcare and specialised logistics. As part of that plan, UPS cut 48,000 jobs and shut down 93 facilities in 2025. It has confirmed that an additional 24 locations will be closed in the first half of this year.
Chief Executive Officer Carol Tomé said the company is nearing the final phase of its effort to reduce Amazon-related volumes. She explained that UPS intends to cut another one million parcels per day over the course of 2026 while continuing to redesign its delivery network.
UPS’ 2024 annual report shows the company employed roughly 490,000 people globally, including nearly 78,000 in management roles. A significant portion of its workforce is unionised.
In a separate operational update, UPS said it has officially retired its MD-11 cargo aircraft fleet, which accounts for about nine per cent of its planes. The aircraft had been grounded following a fatal crash in Louisville, Kentucky, in November.
Shares in UPS edged slightly higher in New York trading on Tuesday following the announcement.
Meanwhile, Amazon has continued to expand its in-house logistics operations, reducing its dependence on traditional carriers. In 2024, the e-commerce giant delivered 6.3 billion packages within the United States, surpassing both UPS and FedEx. Industry projections suggest Amazon could overtake the US Postal Service in delivery volume by 2028, according to data from Pitney Bowes.
