United Parcel Service said on Tuesday that it plans to cut thousands of operational jobs this year in a move to reduce costs and manage fewer Amazon deliveries.

Chief Financial Officer Brian Dykes said in the most recent earnings call that the company will reduce up to 30,000 operational positions and close 24 facilities.

“We did something similar last year in order to help us to right-size the position levels and the network infrastructure with the new volume and delivery levels,” Dykes said on the call.

Last year, UPS slashed approximately 48,000 positions and closed daily operations at 93 facilities within nine months, according to AP News.

The mass reduction is part of an effort to consolidate its workforce and facility operations to deliver less Amazon packages.

During a conference call in January 2025, UPS said it set a goal to lower its volume of Amazon deliveries by 50% by the second half of 2026. Amazon is one of the company’s biggest customers.

“We’re in the final six months of our Amazon accelerated glide down plan, and for the full year, 2026, we intend to glide down another million pieces per day, while continuing to reconfigure our network,” Chief Executive Officer Carol Tome said in the call.

On Tuesday’s earnings call, UPS revealed that the efforts to consolidate saved the company $3.5 billion last year.

The move to receive fewer packages from Amazon comes as UPS aims to focus on more profitable areas such as healthcare. UPS recently acquired Andlauer Healthcare Group Inc., which specializes in “cold chain transportation solutions for the healthcare sector,” according to a press release.

“With the addition of AHG’s specialized cold chain network and expertise, UPS Healthcare customers will benefit from reduced transit times, enhanced end-to-end visibility, deepened global reach, and leading quality assurance,” UPS said in the statement.