UPS Plans another Big Round of Job Cuts as Amazon Pullback Accelerates

CBS News, Axios, and CNBC contributed to this report.

UPS is preparing to shrink its workforce again – this time by as many as 30,000 jobs in 2026 – as the shipping giant doubles down on cost cuts and continues to unwind its once-massive delivery relationship with Amazon.

Chief Financial Officer Brian Dykes laid out the plan Tuesday during the company’s earnings call, saying UPS expects to reduce “operational positions by up to 30,000” as part of its broader turnaround strategy.

“This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers,” Dykes said.

The cuts won’t come alone. UPS also plans to close about two dozen buildings in the first half of 2026, with more closures possible later in the year, and expand the use of automation across its delivery network. The Atlanta-based company employs roughly 490,000 people worldwide.

The latest move speeds up UPS’s ongoing effort to slim down after deciding to deliver far fewer Amazon packages. Once its largest customer, Amazon accounted for about 12% of UPS revenue before the company opted to scale back those shipments in favor of a more profitable and efficient operation. UPS set a goal last year to cut Amazon delivery volume by 50% by the second half of 2026.

CEO Carol Tomé said that strategy is already paying off. UPS saved $3.5 billion in 2025 through consolidation and efficiency efforts tied largely to the Amazon pullback. All told, the company expects to rack up $3 billion in savings from the Amazon wind-down.

This isn’t UPS’s first round of belt-tightening. In 2025, the company eliminated 48,000 positions, including fewer seasonal roles and cuts across both operations and management. Back in April of that year, UPS had already flagged plans to cut 20,000 jobs as Amazon volumes declined faster than expected.

Dykes said the company now expects to reduce total operational hours by about 25 million as a direct result of shipping fewer Amazon packages.

Not everyone is impressed. The Teamsters union, which represents many UPS workers, pushed back sharply at the idea of reviving another voluntary buyout program.

“Considering drivers overwhelmingly rejected it the first time, UPS may try to resurrect its disrespectful buyout program, but Teamsters still know our worth,” the union said in a statement.

It added that UPS should find savings at the management level while honoring contracts and fairly compensating union workers.

UPS says the job cuts are part of a multiyear turnaround under Tomé, aimed at reshaping the business after years of chasing volume over profit. On that front, Wall Street seemed encouraged. The company reported fourth-quarter earnings that beat expectations, and shares were up about 4% in morning trading.

Still, the message from UPS leadership is clear: fewer Amazon boxes, fewer buildings, and a leaner workforce are central to the company’s future – even if the transition comes with painful trade-offs.