UPS to cut 30,000 jobs as part of major restructuring effort

United Parcel Service Announces Plans to Reduce Workforce and Cut Costs

United Parcel Service (UPS), a leading package-delivery company based in the US state of Georgia, has announced plans to reduce its workforce by up to 30,000 jobs as part of efforts to achieve savings of $3 billion in 2026. The job cuts are expected to be achieved through attrition and voluntary buyouts.

According to UPS’s chief financial officer, Brian Dykes, the company will also shut down 24 buildings in the first half of the year and evaluate other buildings for closure in the second half. This move is part of a broader effort to reduce costs and boost profits.

In addition to the job cuts, UPS plans to eliminate 26.9 million labor hours and close 93 buildings as part of its cost-cutting measures. The company’s reported revenues for the final three months of 2025 were $24.5 billion, taking earnings for the year to $88.7 billion.

UPS has also announced plans to reduce shipments for Amazon by half as part of a strategy to focus on a smaller volume of more lucrative deliveries. The company’s projected revenues in 2026 are expected to reach $89.7 billion.

The job cuts have been met with criticism from the Teamsters union, which represents UPS drivers. In a statement, Sean O’Brien, president of the Teamsters union, expressed concerns about the impact of the job cuts on drivers and called for the company to honor its contract and reward its members.

Source: Al Jazeera