UPS Changes Course on Amazon Deliveries
UPS has announced it will cut up to 30,000 jobs this year as it continues to reduce its business with Amazon. The company says Amazon deliveries bring in large volumes but very little profit. Because of this, UPS is moving away from the online retail giant and reshaping its long term strategy.
How UPS Will Reduce Its Workforce
The job cuts will not happen through sudden layoffs. Instead, UPS will offer voluntary buyouts to full time drivers. It will also avoid filling roles when employees leave on their own. This method allows the company to lower costs while keeping daily operations stable.
Financial Results Remain Strong
Despite the planned job reductions, UPS reported strong earnings. The company made 24.5 billion dollars in the final quarter of last year. It also expects revenue to rise to 89.7 billion dollars in the coming year. These figures show that UPS remains financially healthy while adjusting its business model.
Closing Facilities and Reshaping the Network
UPS started cutting back Amazon shipments last year as part of a wider turnaround plan. In 2025, the company cut 48,000 jobs and closed 93 facilities. It now plans to shut another 24 locations in the first half of this year. Chief executive Carol Tome said UPS is entering the final phase of its Amazon reduction plan. The company aims to cut another one million packages per day while reorganizing its delivery network.
UPS Workforce and Union Structure
According to its latest annual report, UPS employs around 490,000 people worldwide. Nearly 78,000 of them work in management roles. Many employees belong to labor unions, which is why voluntary buyouts play a key role in the company’s cost cutting approach.
Cargo Plane Fleet Retirement
UPS also confirmed it has officially retired its MD 11 cargo planes. This decision follows a deadly crash in Louisville, Kentucky, last November. These aircraft made up about nine percent of the company’s fleet and have remained grounded since the incident.
Amazon’s Expanding Delivery Network
Amazon has rapidly expanded its own delivery services over the past few years. In 2024, it handled 6.3 billion deliveries in the United States, surpassing both UPS and FedEx. Industry forecasts suggest Amazon could overtake the US Postal Service in delivery volume by 2028. This shift has changed the balance of power in the delivery industry.
