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UPS will slash up to 30,000 jobs and close down another 24 facilities in 2026
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This, as it cuts deliveries for its largest customer, Amazon.com, to focus on more profitable businesses
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UPS reported a consolidated revenue of $24.5 billion in the fourth quarter of 2025 — above estimates of $24 billion
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The company projected 2026 revenue of $89.7 billion, compared to $88.7 billion in 2025
United Parcel Service on Tuesday announced it will slash up to 30,000 jobs and close down another 24 facilities in 2026, as it cuts deliveries for its largest customer, Amazon.com, to focus on more profitable businesses.
UPS has been reducing deliveries for the online retailer describing the business as “extraordinarily dilutive” to its profit margins.
Earlier, the world’s largest package delivery company said it plans to cut Amazon-related package volume by 50% by June 2026.
Amazon in recent years has also turned into a competitor for the likes of UPS, FedEx and the United States Postal Service, after increasingly ramping up its own delivery services.
On a conference call with analysts, CEO Carol Tome said: “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.”
Chief financial officer Brian Dykes on a post-earnings call said layoffs are not planned with the workforce reduction to “be accomplished through attrition and we expect to offer a second voluntary separation program for full-time drivers.”.
UPS eliminated 48,000 jobs in 2025, launched driver buyouts and closed operations at 93 buildings as Amazon volume shrank.
According to its 2024 annual report, the company employed 490,000 employees with nearly 78,000 in management. No employment numbers were available in 2025.
UPS reported a consolidated revenue of $24.5 billion in the fourth quarter of 2025 — above estimates of $24 billion — with operating profit reaching $2.6 billion, the company reported on January 27.
For the full-year 2025, the company posted consolidated revenue of $88.7 billion. Operating profit totaled $7.9 billion.
The company projected 2026 revenue of $89.7 billion, compared to $88.7 billion in 2025, better than analysts’ average expectation of almost $88 billion.
