Overview

• UPS launched a voluntary buyout program this week for its full-time U.S. delivery drivers, marking the first time the company has offered such packages to union-represented drivers.
• The buyout includes a generous financial incentive on top of any earned pension and retiree healthcare benefits.
• The initiative is part of UPS’s largest network overhaul to date, which also entails cutting about 20,000 jobs and closing 73 facilities.
• UPS has signaled plans to reduce its Amazon package volume by more than 50 percent by the second half of 2026 as demand shifts and costs rise.
• The company says it notified the Teamsters in advance and remains committed to the agreements reached in its 2023 contract negotiations.