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Wednesday, Jan 28, 2026
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UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
After cutting 48,000 roles in 2025, the shipping giant accelerates restructuring with new job reductions and a profitability-focused strategy.
UPS plans to eliminate up to 30,000 additional operational positions in 2026, extending a sweeping cost-cutting initiative aimed at shifting the company’s focus to more profitable segments of the parcel business.
The announcement was made by CFO Brian Dykes following the release of the firm’s fourth-quarter earnings.
The cuts, which follow 48,000 job reductions and 93 facility closures in 2025 alone, are expected to come mainly through attrition and voluntary retirement offers.
The moves are part of UPS's broader restructuring to reduce exposure to low-margin contracts, particularly those with e-commerce giant Amazon.
While Amazon remains UPS’s largest customer, it also operates as a fast-growing competitor.
The company has previously described its Amazon volumes as disproportionately dragging on profit margins.
In response, UPS is recalibrating toward premium, higher-yield deliveries.
Despite the workforce cuts, UPS reported stronger-than-expected earnings for the fourth quarter of 2025, fueled by holiday shipping.
Consolidated revenue reached $24.5 billion, outpacing analyst estimates.
Adjusted earnings hit $2.38 per share, versus projections of $2.20. In the U.S. domestic segment, revenue per package rose 8.3% even as volume fell, signaling a successful pivot toward more lucrative business.
International revenue per piece climbed 7.1%.
The company projects full-year revenue of $89.7 billion by 2026—above Wall Street’s consensus—while reaffirming its goal of $3 billion in cumulative savings.
Still, UPS shares slipped about 1% in early trading.
Investors are reportedly weighing concerns over the social and operational impacts of continued job reductions, as well as the expiration of the U.S. de minimis tax exemption for low-value international shipments, which could dampen cross-border e-commerce.
UPS also booked a one-time $137 million expense tied to retiring its MD-11 cargo jet fleet, following a fatal crash in November.
The decision reflects ongoing shifts in logistics fleet strategy as the company prioritizes safety, efficiency, and modernization.
The announcement was made by CFO Brian Dykes following the release of the firm’s fourth-quarter earnings.
The cuts, which follow 48,000 job reductions and 93 facility closures in 2025 alone, are expected to come mainly through attrition and voluntary retirement offers.
The moves are part of UPS's broader restructuring to reduce exposure to low-margin contracts, particularly those with e-commerce giant Amazon.
While Amazon remains UPS’s largest customer, it also operates as a fast-growing competitor.
The company has previously described its Amazon volumes as disproportionately dragging on profit margins.
In response, UPS is recalibrating toward premium, higher-yield deliveries.
Despite the workforce cuts, UPS reported stronger-than-expected earnings for the fourth quarter of 2025, fueled by holiday shipping.
Consolidated revenue reached $24.5 billion, outpacing analyst estimates.
Adjusted earnings hit $2.38 per share, versus projections of $2.20. In the U.S. domestic segment, revenue per package rose 8.3% even as volume fell, signaling a successful pivot toward more lucrative business.
International revenue per piece climbed 7.1%.
The company projects full-year revenue of $89.7 billion by 2026—above Wall Street’s consensus—while reaffirming its goal of $3 billion in cumulative savings.
Still, UPS shares slipped about 1% in early trading.
Investors are reportedly weighing concerns over the social and operational impacts of continued job reductions, as well as the expiration of the U.S. de minimis tax exemption for low-value international shipments, which could dampen cross-border e-commerce.
UPS also booked a one-time $137 million expense tied to retiring its MD-11 cargo jet fleet, following a fatal crash in November.
The decision reflects ongoing shifts in logistics fleet strategy as the company prioritizes safety, efficiency, and modernization.
