UPS Terminates Amazon Partnership and Advances Restructuring Plan, Cuts Additional 30,000 Jobs

Deep News
Jan 27

United Parcel Service (UPS) has announced it will cut an additional 30,000 operational jobs as it terminates its partnership with Amazon.com. This round of layoffs follows the company's 2025 workforce reduction of 48,000 employees. The job cuts form part of the company's broader transformation strategy, which aims to revitalize its business.

A worker drives a United Parcel Service (UPS) delivery truck on the streets of Los Angeles, California, on October 28, 2025. On that day, UPS reported quarterly earnings that surpassed Wall Street expectations and also announced it had already cut 34,000 jobs within the year. UPS announced on Tuesday that it plans to cut an additional 30,000 positions within the year. This move is a significant step in the company's plan to end its partnership with Amazon and advance its multi-year transformation initiative. Following the release of the company's quarterly earnings, Chief Financial Officer Brian Dykes stated during an analyst call on Tuesday that, as volume from Amazon-related business declines, UPS plans to reduce approximately 25 million operational work hours. "In terms of variable costs, we anticipate reducing up to 30,000 operational positions," Dykes said. "The reductions will be achieved through attrition, and we also plan to introduce a second round of voluntary separation packages for full-time drivers." These proposed layoffs come on top of the 48,000 job cuts UPS made in 2025. Of the 2025 reductions, 34,000 were operational roles and 14,000 were management positions. This figure exceeds the company's previous cumulative layoff estimate of approximately 20,000 jobs. UPS is currently advancing its transformation plan under the leadership of CEO Carol Tomé, with the goal of revitalizing the company. Although Amazon was once UPS's largest customer, the two companies are now phasing out their partnership. UPS stated on Tuesday that ending the relationship with Amazon is expected to save the company a total of $3 billion in costs. UPS released its fourth-quarter earnings on Tuesday, which exceeded Wall Street expectations, and indicated that the company's transformation efforts are showing encouraging progress. In early trading that day, the company's stock price rose by nearly 2%.

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