UPS to Cut 30,000 More Jobs as Amazon Partnership Shrinks

The United Parcel Service (UPS) said on Jan. 27 that it plans to cut another 30,000 jobs this year as the company winds down its delivery partnership with Amazon.

Last year, UPS announced it would reduce Amazon package volumes by more than 50 percent, citing low margins and a strategic shift to bolster profits.

While the retail giant accounts for as much as 12 percent of the carrier’s revenues, UPS says it is not the most profitable customer.

The reduced volume agreement will take effect in the second half of 2026, and UPS estimates it will save about $3 billion from the decision.

In preparation for unwinding its partnership with Amazon, the package delivery titan says it plans to bring down total operational hours by about 25 million.

“In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000,” CFO Brian Dykes said in an earnings call with analysts following the company’s quarterly earnings report.

“This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers.”

UPS is also looking at deploying more automation across its network.

In another cost-savings measure, Dykes noted that the company identified 24 buildings for closure in the first half of the year, “and we’re evaluating additional buildings to be closed later in the year,” he said.

UPS has been in job-cutting mode over the past year as part of CEO Carol Tome’s turnaround strategy to bolster profitability following the end of U.S.-duty-free low-value digital shipments—also known as “de minimis.”

In October, the company confirmed that it slashed its operational workforce by 34,000 and its management staff by 14,000 in 2025.

UPS, meanwhile, reported better-than-expected fourth-quarter earnings, with revenues reaching $24.5 billion. It also posted a profit of $2.38 per share adjusted for the last three months of 2025—higher than the consensus estimate of $2.20.

“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,” Tome said in a statement.

Shares of UPS rose nearly 3 percent during the Jan. 27 morning trading session.

The stock has been off to a strong start this year, surging almost 9 percent to firmly above $100.

This is indicative of the progress UPS is making in its operational changes, says Jay Woods, chief market strategist at Freedom Capital Markets.

“UPS was one of the biggest laggards in the Transportation Average last year and lower by -25 percent over the last 52 weeks,” Woods said in a note emailed to The Epoch Times.

“Yet things appear to be turning around for shareholders of Big Brown.”

Wall Street analysts maintain a “Hold” rating and an upside consensus price target of 1.73 percent, according to MarketBeat.

Layoffs and the Earnings Season

Compared to previous years, layoff announcements have been minimal to start 2026, contributing to the oft-described “low-fire, no-hire” narrative that paints the U.S. labor market.

While hiring has been lackluster since the summer, companies have also been reluctant to fire staff.

Initial jobless claims—the number of individuals filing new applications for unemployment benefits—remained at a historically low level of 200,000.

December’s layoffs were also down about 50 percent from the previous month.

U.S. private employers added an average of 7,750 jobs per week in the four weeks ending Jan. 3—the seventh straight period of job growth—according to payroll processor ADP.

Still, two major tech companies are expected to confirm planned headcount reductions in their upcoming earnings reports.

Meta is expected to eliminate up to 1,500 jobs in its Reality Labs division, focusing on virtual reality and augmented reality teams in California and Washington.

The tech behemoth, however, confirmed to The Epoch Times that it will make a major investment in U.S. manufacturing with materials science firm Corning to supply fiber-optic cables for its data centers.

The move is expected to expand manufacturing operations in North Carolina and add new jobs.

Meta will release its fourth-quarter earnings on Jan. 28, and market watchers say it could set the tone for the rest of the year.

“Investors are braced for a big 2026 opex guide,” John Belton, portfolio manager at Gabelli Funds, said in a note emailed to The Epoch Times.

“If top-line results and guide are strong and if AI strategic commentary excites, this print could be viewed as a clearing event for Meta.”

Additionally, Amazon could confirm reports that it will terminate up to 16,000 corporate positions when it delivers its latest earnings this week.

Reuters contributed to this report.