United Parcel Service plans to eliminate up to 30,000 jobs and close 24 facilities in 2026 as it continues to reduce deliveries for Amazon.com, the company said Tuesday.
The cuts follow a multi-year strategy to shift away from lower-margin Amazon shipments, which UPS began scaling down in 2023. “We’re in the final six months of our Amazon accelerated glide down plan,” CEO Carol Tome said in a call with analysts.
UPS delivered a stronger-than-expected fourth quarter, helping its stock rise 4% in midday trading. Shares of FedEx rose 2.6%.
In 2025, the company eliminated 48,000 jobs and closed 93 facilities. The 2026 reductions will occur through attrition and buyouts for full-time drivers, with no planned layoffs, Chief Financial Officer Brian Dykes said.
UPS had about 490,000 employees in 2024, including nearly 78,000 in management, according to its latest annual report. Updated 2025 figures were not available.
Many of the upcoming cuts will come from unfilled part-time positions as employees leave, Dykes said. UPS has a largely unionized workforce.
Separately, the company is adjusting to lower volumes tied to the end of U.S. duty-free treatment for low-value goods from China-based retailers such as Shein and Temu.
UPS forecast annual revenue of $89.7 billion in 2026, up from $88.7 billion projected for 2025. Analysts had forecast nearly $88 billion for next year, based on LSEG data.
Revenue is expected to fall in the first half of 2026 and then rise in the second half as the Amazon volume decline stabilizes.
UPS reported fourth-quarter consolidated revenue of $24.5 billion, exceeding estimates of $24 billion. It posted adjusted earnings of $2.38 per share, beating expectations of $2.20 per share.
“UPS generated another quarterly beat, primarily through (revenue per piece) upside in both domestic and international,” said Evercore ISI analyst Jonathan Chappell.
Excluding Amazon, peak-season demand was mixed, with small and mid-sized business volumes slightly stronger and large retailer volumes slightly weaker, Dykes said. “We were down a little bit from last year,” he told Reuters.
Revenue per piece rose 8.3% in U.S. domestic markets and 7.1% internationally, driven by a continued focus on higher-margin shipments.
UPS also said it would retire its remaining MD-11 cargo jets by the end of 2025. The move, which follows a fatal crash involving an MD-11 in November, accelerates its existing fleet modernization plan. Replacement Boeing 767s are scheduled for delivery.
The company recorded a non-cash, after-tax charge of $137 million related to the MD-11 write-down.
