UPS Restructures Operations, Cutting 30,000 Jobs and Amazon Volumes

UPS is cutting jobs, and it's a whopping 30,000 roles (and buildings). It wants to stop doing delivery work that doesn't generate enough revenue, especially Amazon deliveries. Although Amazon is UPS’s biggest customer, it does not seem to make much of a profit. At the same time, Amazon is now a direct competitor to UPS in delivery. According to the reports by NBC News, these jobs are mainly operational roles (where people are involved in day-to-day delivery and logistics). The reports also suggest that in 2026, the company will close around 24 more facilities. So, how will these layoffs happen? Learn more.

UPS Job Cuts & Facility Closures

How Will These 30,000 Job Cuts at UPS Happen?

According to UPS, most jobs will be filled through attrition (i.e., by people leaving or retiring). And the company is offering a second voluntary separation program for full-time drivers. This means that the drivers can choose to leave the company in exchange for compensation. The idea was clearly explained by UPS CFO Brian Dykes during an earnings call. Therefore, UPS is addressing the layoff situation responsibly.

Bigger Business Challenges and Revenue Numbers - UPS

UPS is apparently dealing with the end of U.S. duty-free “de minimis” e-commerce shipments (meaning cheap imported goods that used to avoid duties). There was a UPS plane crash in November last year involving its MD-11 aircraft. Later, those MD-11s were retired. The loss was a major one, with non-cash after-tax of $137 million.

Plus, the unpredictable global trade policies and tensions are creating significant uncertainty for UPS. CEO Carol Tomé mentioned that 2025 was a highly volatile and challenging year for business.

Internally, the company is still doing great. Its U.S. deliveries revenue per package rose 8.3%. And its international delivery revenue rose 7.1%. The company made $2.38 profit per share (adjusted) for the quarter ending December 31 (which beat its expected $2.20). It is now expecting $89.7 billion in revenue in 2026 (compared with last year's $88.7 billion). 

What’s Next With Amazon Deliveries With UPS?

UPS began cutting back on Amazon deliveries in January last year. It was all part of UPS's plan, and it is now in the final 6 months. Now in 2026, the company wants to cut another 1 million Amazon packages per day because there are no real profits anymore. Hence, UPS is restructuring its delivery network to focus on more profitable shipments. 

Final Thoughts…

UPS is letting go of 30,000 employees this year. These numbers could increase by year-end, as the company plans to discontinue Amazon deliveries and close 24 additional facilities. Profits are the reason for layoffs. But more specifically, no profits from Amazon deliveries are the real reason (as the company is profitable). For more updates, keep in touch.