The United Parcel Service aims to cut up to 30,000 operational roles in 2026 as part of its transformation strategy, CFO Brian Dykes announced during the company’s quarterly earnings call on Tuesday.
This reduction will “be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers,” Dykes said.
The shipping giant has been in the midst of a transformation strategy, announced in June 2025, focused on optimizing its U.S. network and boosting productivity. The company called it the largest network reconfiguration in UPS history.
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Last year, the company cut 48,000 jobs and initiated driver buyouts. It also shuttered operations at 93 buildings.
“This strategic initiative will optimize the capacity of our network to align with expected volume levels and enhance productivity through additional automation,” UPS said at the time, adding that “the reconfiguration will impact positions, and we are committed to supporting our employees throughout this process.”
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The company said last January that it would accelerate a plan to slash millions of low-profit deliveries for Amazon, its largest customer and a growing delivery rival, calling the business “extraordinarily dilutive” to margins.
“We’re in the final six months of our Amazon accelerated glide-down plan and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network,” CEO Carol Tome said on Tuesday’s call.
UPS said in its Tuesday earnings report that as part of its “Transformation 2.0,” completed in 2025, the company identified opportunities to reduce layers of management.
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It also began reviewing its business portfolio and identified opportunities to invest in certain technologies, including financial reporting and scheduling, time and pay systems, which it said would help reduce global indirect operating costs, improve visibility, and reduce reliance on legacy systems and coding languages.
Reuters contributed to this report.
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