UPS plans up to 30,000 job cuts and building closures as Amazon delivery volume declines

Workforce reductions tied to a shrinking Amazon footprint

United Parcel Service has laid out plans to reduce its operational workforce by up to 30,000 positions during 2026 while closing facilities and lowering hours worked, a restructuring tied to the company’s ongoing reduction in Amazon delivery volume.

Company executives described the 2026 actions as a continuation of a multi-quarter “glide down” in Amazon shipments that began in 2025. UPS said it had already reduced Amazon volume in its network by about 1 million pieces per day by the end of 2025 and intends to reduce another roughly 1 million pieces per day across 2026. The company has framed the shift as part of a broader effort to align staffing and infrastructure with lower package volumes and to concentrate on higher-return segments.

Closures, fewer hours, and expanded automation

In addition to the job reductions, UPS said it has identified 24 buildings for closure in the first half of 2026 and is evaluating additional buildings for possible closure later in the year. The company also plans to reduce total operational hours by approximately 25 million hours in 2026 and to expand automation across its network.

UPS has emphasized that a significant portion of the 2026 workforce reduction is expected to occur through attrition and a voluntary separation program for full-time drivers.

• Up to 30,000 operational positions targeted for reduction in 2026
• About 25 million operational hours planned to be removed in 2026
• 24 facilities slated for closure in the first half of 2026, with more under review

2025 restructuring set the stage

The 2026 plan follows a year of significant network changes. UPS has reported reducing its operational workforce by approximately 48,000 positions during 2025, including a decrease in seasonal staffing, while closing daily operations at 93 buildings. UPS has also reported billions of dollars in cost savings associated with network reconfiguration and efficiency initiatives, and it is now targeting an additional $3 billion in savings connected to the continued Amazon volume reduction in 2026.

Labor and financial context

UPS enters 2026 with a large U.S. union-represented workforce and a national labor agreement with the Teamsters that runs through July 31, 2028. The company has stated that the planned reductions will be managed through a combination of buyouts and attrition, rather than broad immediate layoffs.

UPS has positioned the 2026 restructuring as a network and cost realignment driven by lower volumes from its largest customer and by facility consolidation and automation.

What remains unanswered

UPS has not publicly provided a full list of the 24 buildings slated for closure in the first half of 2026, and the company has indicated that more locations may be identified later in the year. The timing and local impact of job reductions will likely vary by facility as UPS continues to reconfigure its air and ground network to match expected volumes.