Micah Jonah
January 28, 2026
United Parcel Service (UPS) has announced plans to eliminate up to 30,000 jobs, close 24 additional facilities in 2026, continuing its strategic reduction of low-margin Amazon deliveries. The move comes as UPS shifts focus towards more profitable operations and network reconfiguration.
CEO Carol Tome explained the plan, noting the company is in the “final six months” of its Amazon accelerated glide-down strategy, expecting to reduce delivery volumes by another million pieces per day in 2026. UPS had previously eliminated 48,000 jobs and shuttered 93 facilities in 2025 amid declining Amazon business.
UPS CFO, Brian Dykes clarified that the job cuts will occur through attrition and voluntary buyouts for full-time drivers, with no planned layoffs. Many reductions will result from not replacing departing part-time staff, reflecting the company’s unionized workforce structure.
The company projects 2026 revenue of $89.7 billion, surpassing Wall Street expectations, following strong fourth-quarter results of $24.5 billion in consolidated revenue and adjusted earnings of $2.38 per share.
UPS is also accelerating the retirement of its remaining MD-11 cargo jets, taking a non-cash after-tax charge of $137 million, with replacement Boeing 767s already scheduled for delivery.
Despite lower volumes from Amazon, UPS reported growth in revenue per piece 8.3% domestically and 7.1% internationally driven by higher-margin shipments and increased business from small and medium-sized companies.
The adjustments reflect UPS’s ongoing effort to streamline operations, maintain profitability, pivot away from low-margin contracts while preparing for stable long-term growth.
