Georgia: Global parcel delivery giant UPS has planned to cut up to 30,000 jobs this year as it continues to reduce shipments for its largest customer, Amazon, in a move aimed at improving profitability.
The company said the job reductions will be carried out mainly through voluntary buyout offers to full-time drivers and by not replacing employees who leave the business. UPS has been steadily scaling back deliveries for Amazon, describing the contract as ‘extraordinarily dilutive’ to its profit margins.
Despite the workforce cuts, UPS reported solid financial performance, posting earnings of $24.5 billion (£17.7 billion) for the final three months of last year. It also surprised investors with a positive outlook, forecasting revenue of $89.7 billion for the year ahead.
The shift away from Amazon is part of a broader turnaround strategy announced last year, with UPS aiming to focus on more profitable sectors such as healthcare logistics. In 2025, the company cut 48,000 jobs and closed 93 facilities as it reduced Amazon-related volumes. It has been confirmed that a further 24 facilities will close in the first half of this year.
Chief executive Carol Tomé said the company was nearing the end of its planned reduction in Amazon volumes. Carol Tomé stated that, “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.”
According to UPS’s 2024 annual report, the company employed around 490,000 people globally, including nearly 78,000 in management roles. Much of its workforce is unionised, meaning the job cuts could draw scrutiny from labour representatives.
In a separate announcement, UPS confirmed it is officially retiring its fleet of MD-11 cargo aircraft following a fatal crash in Louisville, Kentucky, in November. The planes, which accounted for about 9 percent of the company’s fleet, have been grounded since the incident.
UPS shares closed slightly higher in New York trading, suggesting investors welcomed the company’s focus on profitability despite the significant restructuring.
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