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UPS to Cut Up to 30000 Jobs as It Scales Back Amazon Deliveries

UPS to Cut Up to 30000 Jobs : Parcel delivery giant UPS announced it will cut up to 30,000 jobs in 2026 as part of its plan to further reduce shipments for Amazon, its largest customer. The company described Amazon deliveries as “extraordinarily dilutive” to its profit margins.

The job reductions will occur through buyout offers to full-time drivers and by not replacing staff who leave voluntarily. UPS previously cut 48,000 jobs and closed 93 facilities in 2025 while reducing Amazon shipments, and it plans to shut another 24 facilities in the first half of this year.

“We’re in the final six months of our Amazon accelerated glide down plan, and in 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network,” said UPS CEO Carol Tome.

Financial Performance

Even with job cuts, UPS announced profits of $24.5 billion for Q4 2025 and projected yearly revenue of $89.7 billion for 2026, indicating a robust financial forecast.

The firm is also retiring its collection of MD-11 cargo aircraft, which had remained inactive since a deadly accident in Louisville, Kentucky, in November 2025. The aircraft represented around 9% of UPS’s total fleet
UPS to Cut Up to 30000 Jobs as It Scales Back Amazon Deliveries (1)
UPS to Cut Up to 30000 Jobs as It Scales Back Amazon Deliveries

Shift Away from Amazon

UPS has been lessening its reliance on Amazon as part of a recovery plan, concentrating instead on more lucrative clients, such as healthcare firms. This change signals a wider trend as Amazon takes more control over its deliveries, posing competition to UPS, FedEx, and the US Postal Service (USPS).

In 2024, Amazon shipped 6.3 billion packages within the U.S., outpacing UPS and FedEx, and is expected to surpass USPS in delivery numbers by 2028, as per Pitney Bowes’ parcel shipping index

Conclusion of UPS to Cut Up to 30000 Jobs as It Scales Back Amazon Deliveries

UPS’s workforce reductions and site shutdowns emphasize the firm’s shift from reliance on Amazon to targeting more profitable customersAlthough the job cuts impact many, UPS is preparing for sustained profitability as the U.S. parcel delivery market changes, with Amazon playing a larger role

What Do You Think?

Q: Do you think UPS’s move to reduce Amazon deliveries will strengthen its Profitability, or hurt its market share in the long run?

💬 Comment boxes are open for your answers.

Also Read: U.S. Dollar Falls as Yen Intervention Risk Rises

Khushal Bhatia
Khushal Bhatiahttps://ifranchisenews.com
Khushal Bhatia is a business news writer and a BBA student with a keen interest in the economy and financial systems. Driven by curiosity and a desire to understand how markets and policies shape businesses, he focuses on breaking down economic trends and corporate developments in a clear, engaging way. Khushal believes continuous learning is essential for long-term growth, and through his writing, he aims to help readers navigate the fast-changing business and economic landscape with better insight and confidence.
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