UPS to cut 30,000 jobs as it scales back Amazon deliveries

Parcel delivery giant UPS announced it will cut up to 30,000 jobs in 2026 as part of its plan to reduce shipments for Amazon, its largest customer, which the company says are “extraordinarily dilutive” to profit margins.

The job reductions will occur through voluntary buyouts for full-time drivers and by not replacing staff who leave voluntarily. UPS also reported $24.5 billion in earnings for the final quarter of 2025 and forecast revenue of $89.7 billion for 2026.

UPS has been reducing its dependency on Amazon to focus on more profitable customers, including healthcare companies. In 2025, it cut 48,000 jobs and closed 93 facilities and plans to close another 24 facilities in the first half of this year. CEO Carol Tome said the company aims to continue scaling down Amazon shipments while reconfiguring its network.

The company employs about 490,000 people, including 78,000 in management, with a unionized workforce. UPS also announced it is retiring its MD-11 cargo planes, which make up about 9% of its fleet, following a fatal crash in Louisville, Kentucky, in November.

UPS shares closed slightly higher on Tuesday, while Amazon has increasingly expanded its own delivery services, handling 6.3 billion deliveries in the US in 2024—surpassing both UPS and FedEx. By 2028, Amazon is expected to surpass USPS in US delivery volumes.