UPS is cutting jobs mainly as part of a cost-cutting and restructuring strategy tied to lower package volume (especially from Amazon), heavy investment in automation, and pressure to boost profitability and shareholder returns.

Why is UPS cutting jobs?

UPS has announced multiple waves of job cuts since 2025, ranging from tens of thousands of positions to additional reductions planned for 2026. These cuts are concentrated in “operational roles” (sort hubs, facilities, some management, and via driver buyouts), and are largely being framed by the company as a network “right-sizing” rather than a collapse in demand.

The big drivers behind the cuts

1. Pivot away from Amazon

  • UPS is deliberately shrinking its business with Amazon, which used to make up roughly 12% of its revenue.
  • The company has been executing a “glide down” to cut Amazon volume by about 50% by mid‑2026, shedding millions of packages per day from its network.
  • Less Amazon volume means UPS no longer needs as many workers, facilities, or labor hours, so it is cutting tens of thousands of operational roles and closing dozens of buildings.

In plain terms: UPS decided that a big chunk of Amazon work was lower-margin and not worth the strain on its network, so it’s shrinking capacity to match.

2. Aggressive cost-cutting and profit targets

  • UPS has laid out multibillion-dollar savings goals, including about 3 billion dollars in savings tied to these cuts and network changes in 2026 alone.
  • In 2025 it had already eliminated around 48,000 roles and millions of labor hours while still remaining profitable, showing that the cuts are as much about boosting margins and stock performance as survival.
  • Company leaders have repeatedly presented job reductions, facility closures, and labor‑hour cuts as central to their turnaround and “efficiency” plan.

From a worker’s-eye view, many people see this as classic corporate behavior: cutting jobs even during profitable years to hit earnings and stock-price targets.

3. Automation and “efficiency”

  • UPS is rapidly automating parts of its operations: package sorting, label application, loading and unloading, and more, across hundreds of facilities.
  • As more of those tasks are handled by machines and automated systems, the company needs fewer human workers in hubs and sort centers.
  • Leadership has been explicit that automation helps them reduce dependence on labor and improve productivity per worker.

This is part of a broader logistics trend: technology investment up, headcount down, especially in repetitive, manual roles.

4. Network “right‑sizing” after the pandemic boom

  • Pandemic-era e‑commerce created a huge surge in shipping volume, and UPS expanded capacity to keep up.
  • As demand normalized and some big customers (like Amazon) pulled volume back in-house, UPS was left with more capacity (and labor hours) than it now wants to pay for.
  • To adapt, UPS is closing dozens of facilities, trimming seasonal positions, and shrinking its operations footprint to match current and expected volumes.

Think of it like a company built for “peak pandemic” demand now reshaping itself for a leaner, more selective market.

How UPS says the cuts will happen

UPS has emphasized that many of the 2026 cuts will come through:

  • Attrition (not replacing people who leave or retire).
  • Voluntary separation or buyout programs for full‑time drivers, rather than mass involuntary layoffs alone.
  • Consolidation and closure of facilities, which naturally reduces the need for local staff.

Still, even “soft” cuts translate into fewer jobs in the sector and more insecurity for those working in or hoping to enter it.

What workers and forums are saying

On UPS-related forums and worker subreddits, the reaction has been sharp and emotional:

  • Many employees argue the cuts are less about survival and more about pumping the stock price and CEO bonuses, given UPS has remained profitable.
  • Some posts directly blame leadership, saying management is focused on short‑term investor satisfaction at the expense of long‑term company health and worker loyalty.
  • Others point out that UPS would likely be searching for cost cuts regardless of wage levels, because cutting labor is a standard playbook move in big corporations.

“Pump the stock by cutting workers and costs, long-term it destroys the company.” — sentiment seen in worker discussions.

At the same time, a few voices note that as volumes fall and wages rise under recent contracts, companies often respond with automation and restructuring, even if that doesn’t make it feel any fairer on the ground.

What this means going forward

From a “big picture” angle, the UPS job cuts highlight several trends:

  • Large logistics firms are prioritizing high-margin business over sheer volume, even if that means losing major clients like Amazon.
  • Automation is rapidly reshaping warehouse and delivery work, reducing the number of traditional operational roles.
  • Workers increasingly face a world where even profitable companies cut jobs in the name of “efficiency,” putting more emphasis on union protections, severance, and retraining.

If you’d like, I can help break this down more specifically for drivers, hub workers, or managers, or look at how it compares to job cuts at FedEx or other carriers.

Information gathered from public forums or data available on the internet and portrayed here.