A difficult few months are ahead for UPS. United Parcel Service (UPS) confirmed plans to eliminate up to 30,000 operational positions in the United States by 2026. The American logistics group UPS will cut jobs and close 24 physical facilities this year as it reduces shipments from Amazon and refocuses on more profitable business units.
The announcement was made by the company’s chief financial officer following the earnings presentation
The affected jobs include drivers, sorting center staff, and workers involved in daily deliveries. “We are in the final six months of our accelerated plan to phase out Amazon shipments, and by all of 2026, we intend to cut another million packages per day as we continue to reconfigure our network,” said UPS CEO Carol Tomé. The announcement was made by the company’s chief financial officer following the earnings presentation, as part of a broader plan to reconfigure its operational network.
Automation and increased efficiency, with greater use of technology to sort and move packages with fewer staff
The company cites economic and strategic factors as the reason for this situation. According to the company’s Chief Financial Officer, Brian Dykes, the workforce adjustment will be carried out by not filling vacant positions and through voluntary retirements of full-time drivers. This is due, in part, to a lower volume of shipments, especially after reducing its relationship with Amazon, one of its largest historical clients. In part, there is pressure on profit margins in an environment where labor and operating costs remain high. Finally, automation and increased efficiency, with greater use of technology to sort and move packages with fewer staff, are contributing factors. In any case, the executive has assured that there will be no layoffs.
UPS reported a net profit of $5.572 billion (€4.65 billion) in 2025, a 3.6% decrease compared to the previous year
From a financial perspective, the goal is to protect profits and stability in an increasingly competitive market. In this regard, the multinational indicated a year ago that it would stop processing millions of Amazon shipments due to the slim profit margins they provided. UPS has stated that part of the adjustment will be made by not filling vacancies and through voluntary departures, but the impact on employment remains significant for thousands of families. UPS reported a net profit of $5.572 billion (€4.65 billion) in 2025, a 3.6% decrease compared to the previous year, according to official data.
In short, according to experts, the impact of this decision will be felt mainly in employment and, indirectly, in shipping, consumption and investment prices.