118-year-old shipping giant announces massive layoffs

United Parcel Service (UPS) announced its 4th fourth net study connected Tuesday, Jan 27, earlier the marketplace opened. But it was a double-edged astonishment underscoring that a gross bushed tin besides travel with a precocious cost: a monolithic secondary question of 30,000 occupation cuts in operational roles successful 2026 arsenic portion of a sweeping cost-reduction effort tied mostly to Amazon.

While the parcel transportation elephantine bushed expectations, radical focused much connected the company’s program to reconfigure operations, trim full operational hours, and chopped a important fig of operational positions.

Investors looked beyond the occupation cuts and focused connected the billions successful savings arsenic the company's banal roseate much than 3% intraday earlier settling astatine $107.20 astatine marketplace close.

• Consolidated gross of $24.5 billion 

• Diluted EPS of $2.10 and non-GAAP adjusted EPS of $2.38

• Quarterly dividend of $1.64

• Proposed occupation cuts: 30,000

• Retired its MD-11 craft during Q4, accelerating fleet modernization

In its 2026 guidance, UPS estimated superior expenditures of astir $3 cardinal and dividend payments of astir $5.4 billion.

The parcel transportation institution successful October 2025 reported an ongoing diminution successful Amazon bundle measurement and announced the elimination of 48,000 jobs during its 3Q 2025 net call. In total, we're talking astir 34,000 operational jobs and 14,000 of its absorption workforce.

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Now, successful a 2nd circular of managing operations and cost-cutting measures, UPS plans different 30,000 layoffs. During the net call, the company's CEO Carol Tomé, elaborate the intended decline, arsenic reported successful the transcript connected Investing.com

With this reduction, UPS volition proceed to resize its U.S. web and instrumentality retired variable, semi-variable, and fixed costs.

Regarding adaptable costs, UPS intends to trim its operational hours to astir 25 million, including via occupation cuts. The simplification volition beryllium gradual, and the institution expects to connection a “voluntary separation programme for full-time drivers.”

Regarding fixed costs, UPS said it has identified 24 facilities for closure successful the archetypal fractional of 2026 and continues to measure further sites aboriginal successful the year.

The cuts travel arsenic Amazon itself continues to shrink parts of its firm workforce and logistics, with quality of impending layoffs that could impact arsenic galore arsenic 14,000 positions.