United Parcel Service (UPS), the world’s largest package delivery company, said on Tuesday it will eliminate up to 30,000 jobs in 2026, marking the latest and most aggressive phase of its ongoing restructuring as it moves away from heavy reliance on Amazon’s delivery volume.
These cuts are in addition to the 48,000 job positions slashed last year. The job cuts, which represent roughly 6% of UPS’s global workforce, will come predominantly from “operational positions”.
These are tied to package sorting, handling and delivery, and the cuts will be achieved mostly through attrition and a voluntary separation program for full-time drivers, the company’s Chief Financial Officer Brian Dykes said on a quarterly earnings call.
UPS’s decision reflects a strategic pivot from low-margin Amazon shipments toward more profitable segments such as healthcare logistics and other commercial clients.
The company has been steadily reducing its volume of Amazon package deliveries after classifying that business as “extraordinarily dilutive” to overall profit margins.
The cuts add to a wave of layoffs at UPS that began in 2025 when it began reshaping its network to improve efficiency and cut costs. In the first half of 2026, UPS also plans to close at least 24 additional facilities as part of the broader restructuring.
Despite the workforce reductions, UPS reported better-than-expected revenue and profit for the fourth quarter of 2025, with approximately US$24.5 billion in revenue and a higher annual outlook for 2026, indicating that Wall Street has reacted positively to the cost-saving measures. Shares of UPS rose modestly following the announcement.
Union leaders, particularly from the Teamsters, have criticized the terms of voluntary separation offers, arguing they may not adequately protect worker rights as the company shifts its operational strategy.
UPS says the restructuring is designed to deliver long-term financial stability and profitability, even as its relationship with Amazon continues to evolve away from what was once one of its largest revenue streams.
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