UPS Announces 30,000 Job Cuts, 24 Facility Closures, Retires MD‑11 Fleet
Updated (3 articles)
Massive Workforce Reduction Targets 30,000 Positions UPS will eliminate up to 30,000 jobs in 2026, primarily through attrition and a voluntary separation program for full‑time drivers, extending a restructuring that already removed about 34,000 operational roles and 14,000 management positions earlier in 2025 [1][2][3]. The cuts represent roughly 6 % of its roughly 490,000‑strong global workforce, according to FactSet data [2][3]. UPS plans to replace departing staff only when essential, signaling a long‑term right‑sizing of its labor base.
Facility Closures Expand 2026 Network Consolidation The carrier will shut 24 additional facilities in the first half of 2026, adding to the 93 sites closed during the first nine months of 2025 [2][3]. Earlier in the year the company announced a broader plan to close more than 70 locations as part of the Amazon volume reduction strategy [3]. The closures aim to streamline the sorting and distribution network while reducing overhead costs.
Amazon Shipment Glide‑Down Drives Cost Cuts UPS is in the final six months of its “Amazon accelerated glide‑down” plan, having already cut Amazon deliveries by about one million pieces per day by the end of 2025 and targeting another million‑piece reduction in 2026 [1][2][3]. The volume cut follows a 2025 agreement with Amazon to lower its shipment share by over 50 % by late 2026, directly prompting the workforce and facility reductions. CEO Carol Tome emphasized that the glide‑down will continue while the network is reconfigured.
Financial Performance Remains Strong Amid Restructuring Despite the cuts, UPS reported a fourth‑quarter profit of $24.5 billion and forecast total revenue of $89.7 billion for the coming year [1]. 2025 revenue reached $88.7 billion with an operating profit of $7.9 billion, underscoring robust earnings that support the cost‑saving measures [2][3]. The strong cash flow gives UPS flexibility to fund automation and other efficiency initiatives.
MD‑11 Cargo Fleet Retired After Fatal Louisville Crash Following a deadly crash in Louisville, Kentucky, UPS announced the retirement of its MD‑11 cargo aircraft, which comprised about 9 % of its fleet [1]. The decision removes the aging model from service and reflects a shift toward newer, more efficient planes.
Sources
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1.
BBC: UPS to cut 30,000 jobs as it moves away from Amazon – Details the 30,000 job cuts, $24.5 bn Q4 profit, $89.7 bn revenue forecast, retirement of the MD‑11 fleet, and Amazon’s 6.3 bn US deliveries in 2024
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2.
WBNS: UPS to Cut 30,000 Jobs and Shut 24 Facilities in 2026 – Highlights the job‑cut plan, 24 facility closures, $88.7 bn 2025 revenue, $7.9 bn operating profit, automation push, and the Amazon volume reduction schedule
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3.
King5: UPS to cut 30,000 jobs and close 24 facilities in 2026 – Mirrors the workforce and facility reductions, cites the same financial figures, references prior cuts of 34,000 operational jobs, and stresses the Amazon glide‑down as the catalyst
Timeline
2024 – Amazon processes 6.3 bn U.S. deliveries, surpassing UPS and FedEx, and Pitney Bowes projects it will overtake USPS volumes by 2028 [1].
Jan 2025 – UPS and Amazon sign a pact to cut Amazon‑origin shipments by more than 50% by the second half of 2026, setting the stage for a major network glide‑down [2].
Apr 2025 – UPS announces a plan to slash roughly 20,000 jobs and close over 70 facilities as it begins trimming Amazon volume under the 2025 agreement [3].
Oct 2025 – An October regulatory filing shows UPS has already eliminated about 34,000 operational roles and shut 93 leased or owned buildings in the first nine months of 2025, plus an additional 14,000 management cuts [2][3].
Nov 2025 – Following a fatal MD‑11 cargo‑plane crash in Louisville, Kentucky, UPS retires its MD‑11 fleet, which accounted for about 9 % of its cargo capacity [1].
Dec 2025 (Q4 2025 earnings released Jan 2026) – UPS posts $88.7 bn revenue and $7.9 bn operating profit for 2025, reports a $24.5 bn Q4 profit, and forecasts a surprise revenue rise to $89.7 bn for 2026 [1][2][3].
Jan 27 2026 – CEO Carol Tome tells analysts UPS is in the “final six months of our Amazon accelerated glide‑down plan” and will “glide down another million pieces per day” in 2026 while reconfiguring its network [1][2][3].
Jan 27 2026 – CFO Brian Dykes announces UPS will roll out automation across its network and close 24 buildings in the first half of 2026, with the option for additional closures later in the year [2].
Jan 27‑28 2026 – UPS unveils a 2026 restructuring that will cut up to 30,000 jobs—primarily through attrition and a voluntary separation program for full‑time drivers—and shut 24 facilities, adding to the 48,000 jobs and 93 sites eliminated in 2025 [1][2][3].
First half 2026 – UPS schedules the closure of 24 facilities as part of its network reconfiguration, with the possibility of further site shutdowns in the latter half of the year [2].
By end 2026 – UPS aims to reduce Amazon‑origin daily volume by an additional one million pieces, completing the two‑year glide‑down that began after the 2025 agreement [1][2].
2028 – Industry forecasts expect Amazon’s logistics network to exceed USPS delivery volumes, reshaping the U.S. parcel market [1].