UPS is reshaping its business as it prepares for a new phase in global logistics.
First, the company plans to cut 30,000 jobs and close 24 facilities in early 2026.
The company announced the decision during its earnings call on January 27.
UPS Strategic Reset Underway
During the call, Chief Financial Officer Brian Dykes said UPS is adjusting to changing demand.
However, a weaker fourth quarter exposed the need for a leaner operating model.
Cutting Costs And Capacity
At the same time, UPS is redefining its long-standing relationship with Amazon.
As part of this shift, the company plans to cut Amazon package volumes by 50% by late 2026.
According to Dykes, the move will improve margins and strengthen network efficiency.
Meanwhile, UPS plans to cut 25 million operational hours across its network.
As a result, the company could eliminate up to 30,000 jobs.
In addition, UPS will close 24 facilities in the first half of 2026.
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Later, the company expects to close more sites during the year.
To support these changes, UPS will expand automation across its operations.
Consequently, the company aims to save around $3 billion in 2026.
Alongside these measures, UPS will offer a second voluntary separation programme for full-time drivers.
Industry-Wide Restructuring
Importantly, Dykes said the company views these changes as strategic, not reactive.
Therefore, UPS is aligning its workforce with volume trends and technology investments.
This restructuring builds on earlier actions taken in 2025.
Last year, UPS cut about 48,000 jobs and closed 93 facilities.
Initially, the company planned fewer cuts before expanding the programme.
Moreover, UPS continues to face slower e-commerce growth and wider economic pressures.
In the fourth quarter of 2025, revenue fell 3.2% to $24.5 billion.
Over the full year, revenue declined by $2.4 billion compared with 2024.
Across the market, other major companies are also reducing staff.
According to WARN Tracker, more than 100 firms plan job cuts in 2026.
For example, Amazon, Pinterest, and Meta have all announced workforce reductions.
Ultimately, UPS says these changes will strengthen its long-term competitiveness.
