United Parcel Service announced Tuesday that it plans to eliminate approximately 30,000 positions during the current year as the company continues to wind down its longstanding business relationship with Amazon and executes a broader, multi-year turnaround strategy. The workforce reduction is expected to be driven primarily by lower shipping volumes connected to the gradual exit from Amazon-related operations.
Speaking during a conference call with analysts following the release of quarterly earnings, Chief Financial Officer Brian Dykes said the company anticipates a significant reduction in operational activity as Amazon volumes decline. According to Dykes, UPS expects to cut roughly 25 million total operational work hours associated with the transition away from Amazon shipments, a move that will directly impact staffing levels across parts of its delivery network.
Dykes said the majority of the planned job cuts will involve operational roles and will largely be carried out through natural attrition rather than immediate layoffs. He added that UPS expects to introduce a second voluntary separation program for full-time drivers, allowing eligible employees to exit the company under structured terms. The approach is intended to manage workforce reductions while maintaining operational stability during the transition period.
The newly announced cuts follow substantial job reductions implemented by UPS in the previous year. In 2025, the company eliminated 48,000 positions, including 34,000 operational roles and 14,000 management jobs. Those reductions exceeded earlier projections, as the company had previously estimated that total job cuts would amount to approximately 20,000. The expanded scope of workforce reductions reflects the scale of changes underway within the organization.
UPS is currently pursuing a comprehensive turnaround plan under Chief Executive Officer Carol Tomé, with the goal of improving profitability, streamlining operations, and refocusing on higher-margin business segments. While Amazon had once been UPS’ largest customer, the two companies have been steadily reducing their operational ties. UPS said it expects the wind-down of the Amazon partnership to result in total cost savings of approximately $3 billion over time.
Despite the challenges associated with restructuring and workforce reductions, UPS reported stronger-than-expected fourth-quarter earnings on Tuesday. The company said its results reflect early signs of progress in its turnaround strategy, citing improvements in efficiency and cost management. Executives indicated that the company remains focused on long-term financial stability as it adapts to changing demand within the logistics and supply chain sector.
Investors responded positively to the earnings report and strategic update. Shares of UPS rose nearly 2 percent in morning trading, signaling market confidence in the company’s efforts to reposition itself amid shifting industry dynamics.
