UPS said on Tuesday that it expected to cut as many as 30,000 jobs this year as part of a continuing effort to reduce costs and shore up profits.
Last year, the delivery company eliminated 62,000 positions, by laying off full-time drivers, warehouse workers and managers, as well as seasonal employees. UPS said on Tuesday that it was planning the additional layoffs this year because it expected to deliver fewer packages for Amazon.
The announcement could add to Americans’ concerns about the job market. While unemployment has risen only slightly in recent months, hiring has slowed significantly. Consumer confidence plunged this month, partly because a greater share of consumers said jobs were “hard to get,” according to the Conference Board.
Brian Dykes, UPS’s chief financial officer, said this year’s job cuts would be in “operational positions,” the term UPS uses for delivery and warehouse workers. He said the reductions would occur “through attrition” and by offering “voluntary separation” to full-time drivers. UPS said last year that it wanted to wind down much of its Amazon business because it was not profitable. UPS has said that Amazon was its largest customer.
The news of the layoffs came on the same day that UPS reported its earnings for 2025. The company had net income of $5.57 billion last year, down nearly 4 percent from $5.78 billion in 2024.
UPS had around half a million employees at the start of last year, some 300,000 of whom are members of the Teamsters union. A Teamsters spokeswoman did not respond to requests for comment on the layoffs.
UPS’s leaders are restructuring the company to try to bolster profit margins in a difficult time for the delivery business. Last year, the company suffered a sharp drop in packages sent from China after President Trump imposed tariffs on lower-value shipments from the country.
Last year, UPS closed 93 facilities and deployed automation in 57. Mr. Dykes said on Tuesday that the company had identified 24 more buildings for closure in the first half of the year, and that more could follow.
Investors appear to be backing UPS’s moves to reinvigorate its business. The company’s stock is up over 35 percent from its low last year. Still, over the past year, its shares are down 18 percent, while Fedex’s stock is up 11 percent over the same period.
On an investor call on Tuesday, Carol Tomé, UPS’s chief executive, said, “2025 was a year of considerable progress for UPS.”
In November, a UPS plane crashed in Louisville, Ky., killing three crew members and 12 people on the ground. The plane that crashed was a MD-11F jet, made by McDonnell Douglas, which Boeing acquired in the 1990s. On Tuesday, UPS said that it had retired its MD-11 fleet in the fourth quarter of 2025.
Peter Eavis reports on the business of moving stuff around the world.
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