United Parcel Service (UPS), one of the largest shipping and logistics companies in the United States, has announced plans to cut 30,000 jobs and close 24 facilities in the first half of 2026.
The announcement was disclosed by UPS Chief Financial Officer Brian Dykes during the company’s earnings call on January 27.
He attributed the planned cuts to weaker fourth-quarter performance, driven in part by falling package volumes from Amazon and the impact of the UPS Flight 2976 crash in Louisville on November 4, 2025.
What he is saying
According to Dykes, UPS has been actively reducing its reliance on Amazon, targeting a 50 percent reduction in the volume of packages it handles from the retailer by the second half of 2026.
“We plan to reduce total operational hours by approximately 25 million hours. We expect to reduce operational positions by up to 30,000,” he said
- Dykes added that UPS has slated 24 facilities for closure in the first half of 2026, with more expected later in the year. The company plans to pair these closures with increased automation as part of an effort to cut spending by about $3 billion in 2026.
- UPS also said it will offer a second voluntary separation program for full-time drivers.
- In explaining the job cuts, Dykes described the 2026 plan as a necessary adjustment to the company’s cost structure.
“We are making careful decisions to position UPS for long-term competitiveness. These changes, though difficult, are aimed at aligning our workforce with the current volume trends and technology investments,” he said.
Backstory
UPS’s 2026 job cuts are part of a broader multi‑year restructuring plan that began well before this week’s announcement.
- In 2025, UPS eliminated about 48,000 jobs and closed 93 facilities across its network as it worked to streamline operations and cut costs. The company initially announced plans to cut about 20,000 jobs early in 2025, but that figure grew as broader changes were put in motion.
- Over the past few years, UPS has also faced industry‑wide headwinds such as slower growth in e‑commerce, inflationary pressures, and global trade uncertainties. Economic factors and shifting consumer behaviors have pushed the company to tighten its cost structure and rethink long‑term growth strategies.
In its fourth quarter of 2025, UPS reported consolidated revenue of $24.5 billion, down 3.2 percent compared to the same period in 2024. Full-year revenue for 2025 was down by $2.4 billion compared to 2024.
What you should know
Several major companies are reducing staff as they adjust to market pressures, automation, and strategic shifts in focus.
- More than 100 companies are planning to cut jobs in 2026, according to WARN Tracker, a website that tracks when companies file WARN notices ahead of laying off employees.
- Nairametrics reports that Amazon is planning another round of corporate job cuts this month as part of its broader effort to trim about 30,000 positions, mostly in corporate roles.
- In the tech sector, Pinterest has announced plans to cut about 15% of its workforce, roughly 700 jobs, to reallocate resources toward artificial intelligence and related initiatives.
Meta announced it planned to cut over 1,000 jobs from its Reality Labs division as it shifts its investment away from metaverse products.
