UPS to cut up to 30,000 more jobs in move away from low-profit Amazon shipments

United Parcel Service will cut up to 30,000 operational roles and shut another 24 facilities in 2026, the world's largest package delivery company said on Tuesday, as part of a planned shift toward higher-margin shipments. Last year, the company eliminated 48,000 jobs, launched driver buyouts and closed operations at 93 buildings, targeting about $3 billion in savings this year. The workforce reduction will "be accomplished through attrition and we expect to offer a second voluntary separation program for full-time drivers," Chief Financial Officer Brian Dykes said on a post-earnings call. UPS said in January last year that it would accelerate a plan to slash millions of low-profit deliveries for Amazon.com, its largest customer and a growing delivery rival, calling the business "extraordinarily dilutive" to margins. "We're in the final six months of our Amazon accelerated glide down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network," CEO Carol Tome said on the call. Shares of the company, which topped Wall Street estimates for fourth-quarter results and forecast a surprise rise in annual revenue, were up 2.8% in early trading. Shares of rival FedEx rose 2.5%. UPS had about 490,000 employees with nearly 78,000 in management, according to its 2024 annual report. The company is also looking to rebuild its profitability and stabilize volumes following the end of U.S. duty-free, "de minimis" low-value, e-commerce shipments. "In 2025, we operated through a very dynamic macro environment, including significant change in global trade policies and increasing geopolitical concerns," CEO Tome added. UPS recorded a non-cash, after-tax charge of $137 million related to writing off the MD-11 fleet following a deadly November crash. The company completed the retirement of the fleet in the fourth quarter. The company projected 2026 revenue to be $89.7 billion, compared to the $88.7 billion it reported last year. Analysts on average had expected revenue of $87.94 billion, according to data compiled by LSEG. "UPS generated another quarterly beat, primarily through (revenue per piece) upside in both domestic and international, continuing the better-than-expected pricing theme of the last few quarters," Evercore ISI analyst Jonathan Chappell said. Holiday quarter beat UPS reported fourth-quarter consolidated revenue of $24.5 billion, above estimates of $24 billion. The peak holiday shipping season, from late November into early January, is critical for parcel carriers as their average daily volumes can double, with companies often adding seasonal surcharges. Revenue per piece in the company's U.S. domestic segment rose 8.3% despite lower volumes, while international revenue per piece increased 7.1%, benefiting from its push toward higher-margin shipments. UPS expects revenue to fall in the first half of the year as it completes the Amazon "glide-down," then rise sequentially in the second half once the reductions are complete. On an adjusted basis, UPS reported a profit of $2.38 per share, for the quarter ended December 31, above estimates of $2.20.