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United Parcel Service (UPS) announced on January 28, 2026, during its latest earnings update, plans to cut up to 30,000 jobs as part of a broad restructuring effort aimed at reshaping its operations and improving long‑term profitability. The move comes as the package delivery giant continues to scale back lower‑margin business and adjust its network to reflect changing demand across global logistics markets.
The company disclosed the planned reductions during its latest earnings update, saying the cuts will be spread over the coming year and will focus mainly on operational roles.
UPS said many of the reductions will occur through attrition, voluntary separation programmers and facility closures, rather than sudden mass layoffs. The company also plans to shut or consolidate several facilities as it streamlines its delivery network.
At the same time, UPS reported earnings of $24.5bn US Dollars for the final three months of last year, highlighting resilience in its core business despite lower package volumes. The company also forecast revenue of $89.7bn for the year ahead, a figure that came in above market expectations and offered reassurance to investors amid the ongoing restructuring.
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A key driver behind the restructuring is UPS’s decision to reduce its exposure to unprofitable, high‑volume shipping contracts. In recent years, UPS has steadily moved away from handling large volumes of packages for Amazon, once its biggest customer.
While those deliveries boosted shipment numbers, company executives have said they generated thin margins and placed strain on operations. By cutting back on this business, UPS aims to focus on customers and services that deliver stronger returns.
Leadership has said the strategy is designed to priorities efficiency and profitability rather than sheer volume. The company is increasingly investing in higher‑margin areas such as healthcare logistics, temperature‑controlled deliveries and time‑critical shipments. These segments are seen as more stable and less sensitive to price competition than standard residential deliveries.
However, the announcement has raised concerns among workers and labour groups. Unions representing UPS employees have said they are closely monitoring the situation and have called on the company to ensure fair treatment, adequate support and transparency for those affected by the job reductions.
At the same time, Amazon has significantly expanded its own delivery operations in recent years, weakening the long-standing dominance of UPS, FedEx and the US Postal Service. By building out its in-house logistics network, Amazon has reduced its reliance on traditional carriers, reshaping competition across the parcel delivery industry and adding pressure on established firms to rethink their business models.
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