UPS Plans 30,000 Job Cuts in $3B Cost-Reduction Strategy

United Parcel Service Inc., the world's largest package delivery company, unveiled plans Tuesday to eliminate up to 30,000 positions as part of an aggressive $3 billion cost-reduction initiative aimed at reshaping its business model and improving profitability.The Atlanta-based logistics giant will implement the workforce reduction through voluntary buyouts and natural attrition, Chief Financial Officer Brian Dykes announced during the company's quarterly earnings call. The cuts represent a significant restructuring as UPS seeks to reduce its dependence on Amazon deliveries while focusing on higher-margin services."We expect to offer a second voluntary separation programme for full-time drivers," Dykes stated, outlining the company's approach to managing the transition. The strategy builds upon UPS's 2025 cost-cutting measures, which generated $3.5 billion in savings through the elimination of 26.9 million labor hours and closure of 93 facilities.The company will shutter 24 additional buildings in the first half of 2026, with further facility evaluations scheduled for the latter half of the year. This operational consolidation reflects UPS's strategic pivot announced last year to halve shipments for Amazon, its largest customer, in favor of smaller volumes of more profitable deliveries.Sean O'Brien, president of the International Brotherhood of Teamsters, sharply criticized the announcement on social media, describing company executives as "corporate vultures" and emphasizing that union members "overwhelmingly rejected UPS's insulting payoff last year." The union leader stressed that drivers continue to work in challenging conditions to generate billions in company revenue.Despite the restructuring announcement, UPS reported robust financial performance for 2025, with fourth-quarter revenues of $24.5 billion contributing to annual earnings of $88.7 billion. The company projects 2026 revenues will reach $89.7 billion, signaling confidence in its strategic transformation.Market reaction remained muted, with UPS shares closing marginally higher by 0.22 percent on Tuesday, suggesting investors may have already anticipated the cost-cutting measures as part of the company's ongoing operational realignment in the competitive global logistics sector.