A worker drives a United Parcel Service (UPS) truck on October 28, 2025 in Los Angeles, California.
Mario Tama | Getty Images
United Parcel Service announced Tuesday that it plans to cut an additional 30,000 jobs this year as part of the end of its partnership with Amazon and a multi-year recovery plan.
Chief Financial Officer Brian Dykes said Tuesday on a call with analysts after the company’s quarterly earnings release that UPS plans to reduce total operating hours by about 25 million in connection with Amazon’s decline.
“In terms of variable costs, we plan to reduce operational positions by up to 30,000,” Dykes said. “This will be done through attrition, and we plan to offer a second voluntary separation program for full-time drivers.”
UPS also said it has identified 24 buildings to close in the first half of 2026, with additional closures possible later in the year. Last year, UPS closed 93 buildings, she reiterated Tuesday.
The company also plans to “deploy more automation” across its network, according to Dykes.
The planned job cuts come after UPS cut 48,000 jobs last year, including 34,000 operational and 14,000 management. The company previously estimated that these combined reductions would amount to around 20,000.
In a statement released Tuesday, the Teamsters representative said union workers “always know [their] worth it” if UPS reinstates its buyback program.
“We are perfectly happy for UPS to achieve growth and cost savings on the backs of company leaders, provided they honor their contractual commitments to our members and reward the Teamsters who actually make the business work,” the statement said.
UPS is in the midst of a turnaround plan led by CEO Carol Tomé, aimed at reinvigorating the company. Although Amazon was previously UPS’s largest customer, the two companies are scaling back their operations together. UPS said Tuesday it expects a total of $3 billion in savings from breaking up Amazon.
UPS reported its fourth-quarter results Tuesday, beating Wall Street estimates and citing an encouraging path in its turnaround efforts.
Shares of the company rose 4% in morning trading.