From the Wall Street Journal via Yahoo Finance, January 27:
UPS expects to cut an additional 30,000 operational positions this year, the company said Tuesday, as it continues with its restructuring efforts.
The latest round of cuts come as the company reported higher quarterly profit and guided for slightly higher revenue in the coming year. The shipper eliminated 48,000 positions in 2025, comprising 14,000 management positions and 34,000 jobs in operations. UPS has been working to right-size its business after reducing volumes from Amazon.com, which was once its largest customer.
Chief Financial Officer Brian Dykes said the head count reductions will be accomplished through a voluntary separation offering for full-time drivers, as well as attrition. He declined to estimate the breakdown of driver-buyouts versus attrition, stating it is too early to make an estimate.
“This is a tactical move, and we did something similar last year, in order to help us to right-size the position levels and the network infrastructure,” Dykes said on a call with analysts.
Shares edged 1.8% higher, to $108.93, in morning trading.
UPS said it has so far delivered about $3.5 billion in savings tied to its restructuring, which, beyond job cuts, has included the closure of more than 90 buildings and a push toward automation.
Chief Executive Carol Tomé said the company has achieved its volume-reduction target in 2025, which included reducing volumes from Amazon by about 1 million parcels a day. UPS expects to limit Amazon volumes by an additional 1 million packages a day in 2026, she added.
The company expects to record additional cost-savings this year, largely concentrated in the back half, driven by continued job cuts and the closure of at least 24 more facilities. “Plus, we plan to further deploy automation across the network,” Dykes said.
The job cuts were disclosed on UPS’s fourth-quarter earnings call, as the company posted higher profit despite a charge tied to the retirement of one of its aircraft fleets and said its restructuring efforts were starting to pay off.
The company said profit rose to $1.79 billion, or $2.10 a share, compared with $1.72 billion, or $2.01 a share, in the same quarter last year....
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