Jan. 27 (UPI) — UPS announced Tuesday that it plans to cut its workforce by 30,000 this year in a move to cut expenses.
“In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000,” UPS CFO Brian Dykes said during a company earnings call. “This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers.”
UPS also announced it has retired all MD-11 planes in its fleet after a fiery crash on Nov. 4 in Louisville, Ky., that killed 15. The plane that crashed was an MD-11.
Dykes also said UPS plans to close 24 buildings in the first half of 2026 and plans to “deploy automation” in its network.
UPS, based in Seattle, has about 490,000 employees worldwide.
The company set a goal of reducing Amazon deliveries by 50% by the second half of 2026, and the reduction of workforce is part of its plan to consolidate facilities.
UPS CEO Carol Tomé said Tuesday that the company saved $3.5 billion last year because of its consolidation moves.
In April, UPS announced it would cut 20,000 jobs after Amazon said it would cut back use of the logistics giant. But it actually eliminated 48,000 jobs last year, including 34,000 in operations and 14,000 management, CNBC reported.
“I want to thank UPSers across the globe for their tireless commitment to serving our customers as we delivered best-in-class service during peak for the eighth year in a row and outperformed our financial expectations in the fourth quarter,” Tomé said in a statement Tuesday. “2025 was a year of considerable progress for UPS as we took action to strengthen our revenue quality and build a more agile network. Looking ahead, upon completion of the Amazon glide-down, 2026 will be an inflection point in the execution of our strategy to deliver growth and sustained margin expansion.”
UPS’s stock rose 2% in morning trading, CNBC reported.