United Parcel Service announced Tuesday about 30,000 job cuts this year as the company winds down its partnership with Amazon as part of an intense cost-cutting agenda — and after cutting tens of thousands of jobs just last year.
The Atlanta-based delivery giant plans to slash total operational hours by approximately 25 million by reducing its dependence on Amazon, CFO Brian Dykes said during a call with analysts Tuesday.
“In terms of variable costs, we expect to reduce operational positions by up to 30,000,” Dykes said.
“This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers.”
UPS also said it has identified 24 buildings for closure in the first half of 2026, adding that further closures could come later this year. The company closed 93 buildings last year.
The company also plans to “further deploy automation” across its network, Dykes said.
UPS slashed a whopping 48,000 jobs last year, including 34,000 operational roles and 14,000 in management.
Tuesday’s announcement came as a surprise after the company initially estimated a combined 20,000 layoffs over the course of 2025.
It’s part of a multiyear turnaround plan under CEO Carol Tomé, who took the helm in 2020, making her the first woman and company outsider to lead UPS.
She has faced mounting pressure from investors and employees frustrated by the company’s underperformance and lagging stock price compared to rivals like FedEx and Amazon’s logistics arm.
“2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network,” Tomé said in a Tuesday statement.
“Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.”
Amazon was previously the delivery firm’s largest customer, but the two companies are working to end their joint operations.
UPS said it expects $3 billion in total savings from unwinding its business with Amazon.
Shares in UPS jumped 3% Tuesday after the company announced the job cuts and released fourth-quarter earnings that beat Wall Street expectations – including adjusted profit of $2.6 billion and $24.5 billion in consolidated revenues.
