UPS To Cut 30,000 Jobs As Amazon Volumes Decline
Synopsis
United Parcel Service said it will eliminate up to 30,000 operational jobs in 2026 and close at least 24 facilities as it adjusts to declining package volumes from Amazon. The changes follow a major restructuring in 2025, when UPS cut 48,000 jobs and closed dozens of buildings. Executives said the workforce reductions will largely be managed through attrition and voluntary separation programmes. The move reflects a broader shift in the logistics industry as carriers prioritise efficiency and profitability amid changing e-commerce delivery patterns.
United Parcel Service (UPS) said it will reduce its workforce by up to 30,000 operational roles in 2026 as declining package volumes from Amazon reshape its delivery network. The company also plans to close 24 facilities during the first half of the year. UPS said the measures are part of a broader effort to align capacity with demand and improve efficiency.
Workforce Reduction Plans
UPS announced that it expects to eliminate as many as 30,000 operational positions this year. The reductions will primarily occur through natural attrition and voluntary separation programmes, including offers extended to full-time drivers.
Company executives said the approach is intended to limit the need for involuntary layoffs while adjusting staffing levels to match current shipping volumes.
Alongside the workforce changes, UPS plans to close 24 buildings during the first six months of 2026, with additional closures possible later in the year. The company said these moves are aimed at streamlining its logistics network and removing excess capacity created by lower shipment demand.
Amazon Relationship Reset
A key driver behind the restructuring is UPS’s decision to significantly reduce the volume of packages it delivers for Amazon. The two companies agreed to cut Amazon-related deliveries handled by UPS by about 50% by mid-2026.
Amazon has been expanding its own delivery operations, lowering its reliance on third-party carriers. For UPS, the Amazon business historically generated high package volumes but relatively thin margins, prompting the company to shift its focus.
The changes highlight ongoing adjustments across the global logistics sector as e-commerce growth stabilises and major retailers invest in in-house delivery networks. Carriers are increasingly prioritising profitability and network efficiency over volume growth.
“We are continuing to align our workforce and facilities with expected demand levels,” said Brian Dykes, Chief Financial Officer of UPS, during an earnings call. “The reduction of up to 30,000 operational positions will largely be achieved through attrition and voluntary separation programmes.”
UPS executives said the company remains focused on improving service reliability while managing costs linked to lower volumes.
Previous Job Cuts and Closures
The latest announcement follows a major restructuring effort in 2025, when UPS eliminated approximately 48,000 jobs and closed 93 facilities. Those actions were taken as shipping volumes softened and the company reassessed its long-term network needs.
At the end of 2024, UPS employed roughly 490,000 people worldwide, making workforce adjustments a significant step for the logistics provider.
The reduced reliance on Amazon reflects a broader shift in the parcel delivery market. Large retailers are increasingly building internal logistics capabilities, while carriers like UPS and FedEx are adjusting their networks to reflect changing customer mixes and shipping patterns.
Implementation Through 2026
UPS said job reductions and facility closures will be implemented gradually throughout the year. The company will continue offering voluntary separation packages while relying on attrition to meet its workforce targets.
Looking ahead, UPS plans to invest further in automation and focus on segments with steadier demand, including healthcare logistics and business-to-business shipping. The company said these areas offer more predictable volumes and stronger margins.
Key Highlights
- UPS plans to cut up to 30,000 operational jobs in 2026
- At least 24 facilities will close in the first half of the year
- Reduced Amazon delivery volumes are a major factor behind the changes
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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