United Parcel Service (UPS) has announced plans to eliminate up to 30,000 jobs this year as it deepens a strategic shift away from Amazon deliveries, even as the parcel major reports solid quarterly performance. The move underlines UPS’ focus on profitability over volume as it reshapes its global network.
The workforce reduction will be carried out through voluntary buyouts for full-time drivers and by leaving vacant roles unfilled as employees exit. The company has not specified which geographies will see the biggest impact, but the cuts are expected to be spread across operations as part of a broader cost and capacity reset.
UPS has been steadily reducing its dependence on Amazon, long its largest customer, after concluding that the business generates weak margins. Over the past few years, the company has deliberately pulled back from high-volume, low-yield shipments and redirected capacity toward customers that offer stronger returns. Healthcare logistics, time-critical deliveries and specialised supply-chain services have emerged as key focus areas in this transition.
The job cuts come despite encouraging financial signals. For the final quarter of last year, UPS posted a revenue of $24.5 billion and projected full-year revenue of nearly $90 billion, exceeding market expectations.
This is not the first phase of downsizing for the company. Last year, UPS eliminated tens of thousands of roles and shut dozens of facilities as part of its ongoing turnaround effort. More site closures are planned in the first half of this year as the company continues to streamline operations.
UPS currently employs close to half a million people worldwide, many of whom are unionised.
Alongside workforce changes, the company is also simplifying its air fleet and reassessing long-term capacity needs. Investors appeared reassured by the strategy, with shares edging higher, signalling confidence in UPS’ margin-focused reset.
