United Parcel Service has announced plans to cut 30,000 jobs this year and “further deploy automation” across its network. The assertion came from Chief Financial Officer Brian Dykes during an investor call on Tuesday amid continued efforts to untangle a long-term partnership with Amazon. UPS had previously slashed some 48,000 positions in 2025 and closed down 93 facilities.
“In terms of variable costs, we expect to reduce operational positions by up to 30,000. This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers,” multiple reports quoted Dykes as saying.
The company uses the term ‘operational positions’ for delivery and warehouse workers. Dykes also indicated during the call that UPS would offer a “second voluntary separation program for full-time drivers”. The announcement comes nearly a year after UPS announced plans to halve its Amazon shipment volumes by mid-2026.
Massive job cuts
UPS has removed tens of thousands of workers over the past year in the midst of an elaborate turnaround plan. The company made 48,000 positions redundant in 2025 and now appears poised to continue the trend. Dykes said “up to 30,000” operational positions would be removed within the next few months — with a projected $3 billion in savings. UPS reportedly had around half a million employees at the start of last year.
The company also said it had identified 24 buildings for closure during the first half of 2026 and increase automation. Additional closures are also possible later in the year. Dykes noted that UPS had closed 93 buildings and deployed automation in 57 during 2025.
Separation from Amazon
The shipping company had tied up with Amazon in the late 1990s and helped the e-commerce giant led by Jeff Bezos build its own logistics strategy. Dependence had declined as Amazon aggressively expanded its in-house delivery network over the years — with UPS announcing plans to cut Amazon shipment volumes by over 50% last year.