UPS Plans to Eliminate 30,000 Jobs by 2026 Amid Shift Away from Amazon Partnership
Mainstay Capital Management CEO and founder David Kudla joins ‘Mornings with Maria’ to discuss his outlook for stocks, A.I.’s massive expansion, and the surging energy demand powering data centers worldwide.
The United Parcel Service (UPS) is set to reduce its workforce by up to 30,000 operational roles by 2026 as part of a comprehensive transformation strategy. CFO Brian Dykes revealed this plan during the company’s quarterly earnings call on Tuesday.
This significant reduction will primarily occur through attrition, with UPS also planning to offer a second voluntary separation program specifically for full-time drivers. Dykes emphasized that this initiative is part of a broader strategy aimed at optimizing UPS’s U.S. network and enhancing productivity. The company has labeled this effort as the largest network reconfiguration in its history.
In the previous year, UPS made headlines by cutting 48,000 jobs and initiating driver buyouts, alongside closing operations at 93 facilities. This strategic initiative aims to optimize the capacity of the network to align with anticipated volume levels while enhancing productivity through increased automation.
The shipping giant has been in the midst of a transformation strategy. (Spencer Platt/Getty Images)
UPS has committed to supporting its employees throughout this transition, acknowledging that the reconfiguration will inevitably impact various positions. The company stated, “This strategic initiative will optimize the capacity of our network to align with expected volume levels and enhance productivity through additional automation.”
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In January, UPS announced an acceleration of its plan to reduce low-profit deliveries for Amazon, its largest customer, which it described as “extraordinarily dilutive” to margins. CEO Carol Tome noted, “We’re in the final six months of our Amazon accelerated glide-down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network.”
During the earnings call, UPS revealed that as part of its “Transformation 2.0,” completed in 2025, the company has identified opportunities to streamline management layers.
A UPS delivery truck parked in Pittsburgh, Pennsylvania. (Paul Weaver/SOPA Images/LightRocket via Getty Images)
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Additionally, UPS has begun reviewing its business portfolio to identify investment opportunities in various technologies. These include advancements in financial reporting, scheduling, and time and pay systems, which are expected to help reduce global indirect operating costs, enhance visibility, and decrease reliance on outdated systems and coding languages.
A UPS Boeing 767 aircraft at San Diego International Airport in San Diego, California (Kevin Carter/Getty Images)
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Reuters contributed to this report.
Mainstay Capital Management CEO and founder David Kudla joins ‘Mornings with Maria’ to discuss his outlook for stocks, A.I.’s massive expansion, and the surging energy demand powering data centers worldwide.
The United Parcel Service (UPS) is set to reduce its workforce by up to 30,000 operational roles by 2026 as part of a comprehensive transformation strategy. CFO Brian Dykes revealed this plan during the company’s quarterly earnings call on Tuesday.
This significant reduction will primarily occur through attrition, with UPS also planning to offer a second voluntary separation program specifically for full-time drivers. Dykes emphasized that this initiative is part of a broader strategy aimed at optimizing UPS’s U.S. network and enhancing productivity. The company has labeled this effort as the largest network reconfiguration in its history.
In the previous year, UPS made headlines by cutting 48,000 jobs and initiating driver buyouts, alongside closing operations at 93 facilities. This strategic initiative aims to optimize the capacity of the network to align with anticipated volume levels while enhancing productivity through increased automation.
The shipping giant has been in the midst of a transformation strategy. (Spencer Platt/Getty Images)
UPS has committed to supporting its employees throughout this transition, acknowledging that the reconfiguration will inevitably impact various positions. The company stated, “This strategic initiative will optimize the capacity of our network to align with expected volume levels and enhance productivity through additional automation.”
FORD TEMPORARILY HALTS KENTUCKY PLANT OPERATIONS AFTER DEADLY UPS PLANE CRASH
In January, UPS announced an acceleration of its plan to reduce low-profit deliveries for Amazon, its largest customer, which it described as “extraordinarily dilutive” to margins. CEO Carol Tome noted, “We’re in the final six months of our Amazon accelerated glide-down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network.”
During the earnings call, UPS revealed that as part of its “Transformation 2.0,” completed in 2025, the company has identified opportunities to streamline management layers.
A UPS delivery truck parked in Pittsburgh, Pennsylvania. (Paul Weaver/SOPA Images/LightRocket via Getty Images)
TRANSPORTATION SECRETARY LAUNCHES CIVILITY CAMPAIGN AS UNRULY PASSENGER INCIDENTS SURGE 400%
Additionally, UPS has begun reviewing its business portfolio to identify investment opportunities in various technologies. These include advancements in financial reporting, scheduling, and time and pay systems, which are expected to help reduce global indirect operating costs, enhance visibility, and decrease reliance on outdated systems and coding languages.
A UPS Boeing 767 aircraft at San Diego International Airport in San Diego, California (Kevin Carter/Getty Images)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reuters contributed to this report.
