UPS plans to eliminate 30,000 additional jobs in 2026, citing the end of its partnership with Amazon and a broader operational restructuring effort as key drivers. The announcement follows a previous round of 45,000 job cuts in 2025, as the shipping giant accelerates its cost-cutting turnaround plan amid shifting e-commerce dynamics, according to CNBC.
The move signals a significant reset for UPS, which had long counted Amazon as one of its largest and fastest-growing clients. As Amazon has built out its own logistics network—now rivaling traditional carriers—UPS has increasingly sought to rebalance its delivery portfolio and focus on higher-margin business customers.
CEO Carol Tomé emphasized that the layoffs are part of a wider initiative to streamline operations, improve network efficiency, and realign staffing levels with post-pandemic demand patterns. The restructuring plan is also designed to boost profitability and adapt to a parcel market that’s seen declining volumes and intense competition.
Analysts note that while the Amazon exit reduces volume, it could ultimately improve UPS’s margin profile by reducing reliance on low-yield deliveries. Still, the scale of the layoffs—roughly 7% of the company's global workforce—highlights the magnitude of the strategic shift underway.
UPS says impacted employees will be offered severance packages and transition assistance, and that it will continue investing in automation and technology to support its next-generation logistics model.
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Staff Report
Dan Craft
