United Parcel Service (UPS) announced on Tuesday that it will be eliminating an additional 30,000 positions this year, in an effort to wind down its collaboration with Amazon and implement a multiyear recovery plan.
Following the company's quarterly earnings report on Tuesday, CFO Brian Dykes told investors that UPS intends to cut overall operating hours by about 25 million due to the reduction at Amazon.
"In terms of variable costs, we expect to reduce operational positions by up to 30,000," Dykes said. "This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers."
Additionally, according to UPS, 24 facilities will be closed in the first half of 2026, and more closures may occur later in the year. UPS reaffirmed on Tuesday that it closed 93 buildings last year.
According to Dykes, the firm also intends to "further deploy automation" throughout its network.
The proposed layoffs follow UPS's elimination of 48,000 positions last year, of which 14,000 were in management and 34,000 were in operations. The business had previously projected that the combined reductions would come to about 20,000.
