UPS Cutting 30,000 Jobs After Ending Amazon Partnership
UPS announced last week that it's cutting about 30,000 jobs this year as the company winds down its partnership with Amazon and doubles down on an intense cost-cutting agenda—and that's after slashing tens of thousands of jobs just last year.
The Atlanta-based delivery giant plans to reduce total operational hours by approximately 25 million by cutting its dependence on Amazon, CFO Brian Dykes said during a call with analysts Tuesday.
"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."
UPS also identified 24 buildings for closure in the first half of 2026, with more closures potentially coming later this year. The company closed 93 buildings last year.
The company plans to "further deploy automation" across its network, Dykes added.
Already Cut 48,000 Jobs Last Year
UPS slashed a whopping 48,000 jobs in 2025, including 34,000 operational roles and 14,000 in management.
Tuesday's announcement came as a surprise after the company initially estimated a combined 20,000 layoffs over the course of 2025. Turns out they weren't done.
The cuts are part of a multiyear turnaround plan under CEO Carol Tomé, who took the helm in 2020, making her the first woman and company outsider to lead UPS. She's faced mounting pressure from investors and employees frustrated by the company's underperformance and lagging stock price compared to rivals like FedEx and Amazon's logistics arm.
"2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network," Tomé said in a Tuesday statement. "Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion."
Amazon Was the Biggest Customer
Amazon was previously UPS's largest customer, but the two companies are working to end their joint operations. UPS expects $3 billion in total savings from unwinding its business with Amazon.
So, the company is betting big that ditching Amazon, automating operations, closing buildings, and cutting 78,000 jobs over two years will turn things around.
Wall Street Liked It
Shares in UPS jumped 3% Tuesday after the company announced the job cuts and released fourth-quarter earnings that beat Wall Street expectations—including adjusted profit of $2.6 billion and $24.5 billion in consolidated revenues.
Investors were happy. The 78,000 people who've lost or are about to lose their jobs probably feel differently.
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