UPS to cut 30,000 jobs as it reduces Amazon deliveries
28 Jan 2026

The world's largest package delivery company, United Parcel Service (UPS), has announced its plan to reduce its workforce by up to 30,000 employees this year.

The decision comes as part of the company's strategy to reduce shipments for its biggest customer, Amazon.

UPS has been scaling back deliveries for the online retail giant due to their "extraordinarily dilutive" impact on profit margins.

Job cuts to be made through buyouts and attrition
Strategy

The job cuts at UPS will be implemented through buyout offers to full-time drivers and by not replacing employees who leave voluntarily.

The company had previously announced plans to cut 48,000 jobs and close 93 facilities in 2025 as part of its strategy to reduce Amazon deliveries.

Now, it plans to close another 24 facilities in the first half of this year.

UPS's shift toward more profitable customers
Business pivot

In 2025, UPS reported a revenue of $24.5 billion for the last three months of the year and projected an unexpected revenue increase to $89.7 billion for the coming year.

The company is moving away from Amazon as part of a turnaround plan, which includes focusing on more profitable customers such as healthcare companies.

"We're in the final six months of our Amazon accelerated glide down plan," said UPS CEO Carol Tome.

UPS's workforce and fleet changes
Operational adjustments

According to its 2024 annual report, UPS had a workforce of around 490,000 employees with nearly 78,000 in management.

The company also announced the retirement of its MD-11 cargo planes fleet after a deadly crash in Louisville, Kentucky last November.

The planes accounted for about 9% of the company's fleet and had been grounded since the incident.

Amazon's growing delivery services impact UPS
Market competition

Amazon has expanded its own delivery services in recent years, challenging the dominance of UPS, FedEx, and the US Postal Service (USPS).

In 2024, Amazon delivered 6.3 billion packages in the US, surpassing both UPS and FedEx.

By 2028, it is expected to overtake USPS in US delivery volumes, according to Pitney Bowes's parcel shipping index report.