UPS announces the reduction of 30,000 jobs during 2026
UPS announced the reduction of up to 30,000 positions in 2026 as part of its plan for savings, automation, and less dependence on Amazon
The year 2026 begins with profound adjustments in the logistics industry in the United States. UPS, one of the largest courier companies in the world, confirmed a staff reduction plan that will impact tens of thousands of workers. The decision is part of a broader strategy to cut costs, optimize operations, and redefine its relationship with major customers. The company plans to eliminate up to 30,000 jobs this year. The announcement was made by Brian Dykes, UPS's chief financial officer, during an earnings call with investors. He explained that the focus will be on reducing semi-variable operating costs. "In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000," Dykes said. "This will be achieved through workforce reductions, and we anticipate offering a second voluntary separation program for full-time drivers." In addition to the workforce reduction, the company is implementing other cost-cutting measures. These changes include the closure of approximately two dozen buildings during the first half of 2026. This is coupled with a more aggressive effort to incorporate automation in various areas of its logistics network. UPS, headquartered in Atlanta, currently has approximately 490,000 employees worldwide. These adjustments aim to accelerate the consolidation of facilities and operations, a strategy the company has been developing for several years. One of the key factors behind this restructuring is UPS's decision to significantly reduce shipments from Amazon. In 2025, the company announced its goal of decreasing Amazon package deliveries by 50% by the second half of 2026. This transition has forced a rethink of its operational capacity. During the same call, CEO Carol Tome highlighted the results of this process. "Last year we achieved savings of $3.5 billion as part of our consolidation efforts,"Tome stated.
This is not the first time UPS has adjusted its workforce for this reason. In April 2025, the company had already announced it would cut 20,000 jobs due to a decrease in orders from Amazon. On this occasion, Amazon did not immediately comment on the announcement.