United Parcel Service said Tuesday it will cut 30,000 jobs in 2026 as it continues to unwind its relationship with Amazon, marking another year of significant cost reductions as the company works to reposition its business.
UPS also plans to close 24 facilities in the first half of 2026, CFO Brian Dykes told investors, with the measures expected to generate roughly $3 billion in savings.
The layoffs come as U.S. job losses remain relatively limited and hiring growth stays muted. The unemployment rate edged down to 4.4% in December, while weekly jobless claims have held steady at around 200,000.
Based in Atlanta, UPS has been deliberately reducing its reliance on Amazon shipments—once its largest source of volume—in an effort to become what it calls a more profitable and flexible company. When the strategy was announced last year, Amazon said UPS had requested lower volumes, despite Amazon offering to ship more through the carrier.
UPS cut 48,000 jobs in 2025 and currently employs about 490,000 people worldwide. Dykes said the latest reductions will largely occur through attrition, with another voluntary buyout program expected for full-time drivers.
The Teamsters union criticized the proposed buyouts, calling them disrespectful, and said workers would push back if contractual obligations are not met.
Despite the cuts, UPS reported strong fourth-quarter results, posting $2.6 billion in profit on $24.5 billion in revenue. CEO Carol Tomé described 2026 as a turning point as the company targets renewed growth and improved margins.
UPS also confirmed it has retired its MD-11 cargo aircraft as part of a fleet modernization plan, a move that cost $137 million. Shares rose more than 4% intraday before closing slightly higher at $107.20.