United Parcel Service (UPS) has announced plans to cut up to 30,000 operational jobs in 2026 as part of a broad restructuring strategy aimed at improving efficiency and profitability. The move is intended to reduce the company’s dependence on low-margin shipping volumes and to streamline its logistics network.
UPS explained that most of the workforce reduction will be achieved through voluntary separation programs, retirements, and not replacing vacant positions, rather than through forced layoffs. In addition, the company plans to close 24 facilities during the first half of the year and increase automation across its operations.
The decision follows similar measures taken in previous years, as UPS continues shifting its focus toward higher-margin businesses, including healthcare logistics and business-to-business services, while adapting to changes in global shipping demand.
Why does this matter?
Because it signals a major transformation in UPS’s business model, prioritizing efficiency and automation over volume, with a significant impact on employment in the logistics sector.
Official UPS Statement
UPS confirmed that the job reductions are part of a long-term strategic restructuring plan announced during its latest earnings presentation. The company stated that the changes are designed to create a leaner, more flexible, and automated operation, capable of delivering sustainable growth in the future. UPS emphasized that employee support programs will accompany the transition and that the measures are not intended as sudden or abrupt layoffs.