UPS Restructures Amid Shift from Amazon Deliveries: Major Job Cuts and Facility Closures Announced

United Parcel Service (UPS) plans to cut up to 30,000 jobs and close 24 facilities by 2026 to reduce Amazon deliveries, aiming for more profitable business. This restructuring follows previous workforce reductions and comes as delivery services face weak demand. The company expects revenue growth post adjustment.

United Parcel Service (UPS) announced significant restructuring efforts, including the elimination of up to 30,000 jobs and closing 24 facilities by 2026. This move aims to reduce reliance on Amazon.com deliveries and pivot towards more profitable business endeavors.

The decision comes as part of a strategic shift that has already seen 48,000 jobs cut and numerous operations closed due to declining Amazon volumes. UPS continues to tackle soft demand in the delivery sector, and its Chief Financial Officer Brian Dykes confirmed job reductions will primarily occur through attrition rather than layoffs.

With its sights set on stabilizing revenues, UPS projects its 2026 revenue to reach $89.7 billion. The company also aims to adapt following the end of certain e-commerce shipments while maintaining a strong performance in the holiday quarter, aided by successful pricing strategies and the retirement of its MD-11 fleet.

(With inputs from agencies.)