Overview
- UPS said the cuts will come through attrition and a second voluntary separation program for full-time drivers, focusing on operational roles.
- Management identified at least 24 facilities to close in the first half of 2026 and plans to reduce about 25 million operational hours as Amazon volumes fall.
- CEO Carol Tomé said UPS will remove roughly another 1 million Amazon parcels per day in 2026 to pivot away from low-margin shipments.
- The company targets about $3 billion in 2026 savings after eliminating 48,000 jobs and closing 93 facilities in 2025, with more automation slated across the network.
- UPS beat Q4 expectations with $24.5 billion in revenue and guided to about $89.7 billion in 2026 revenue with an adjusted operating margin near 9.6%.