United Parcel Service said it will eliminate up to 30,000 jobs and close 24 additional facilities in 2026 as it continues to reduce delivery volume for Amazon and to restructure its network. The announcement came alongside UPS’s fourth-quarter earnings results, which exceeded Wall Street expectations, and a 2026 revenue forecast that surpassed analyst estimates. UPS shares rose 4% in midday trading following the release, while FedEx shares gained 2.6%.

Continued Reduction of Amazon Volume

UPS is in the final phase of its Amazon-accelerated glide-down plan. Chief Executive Officer Carol Tome said the company intends to reduce Amazon volume by another 1 million packages per day during 2026 while continuing to reconfigure its delivery network.

In January 2025, UPS announced it would accelerate plans to cut millions of low-margin deliveries tied to Amazon, its largest customer and a growing logistics competitor. At the time, UPS described the business as dilutive to margins. The company and its competitors have faced persistently soft demand across the delivery sector.

Workforce Reductions Planned for 2026

UPS said the planned job reductions will occur through attrition and another voluntary buyout offer for full-time drivers. Chief Financial Officer Brian Dykes said the company does not plan to implement layoffs.

The company eliminated 48,000 jobs in 2025, launched driver buyouts, and closed operations at 93 facilities as Amazon’s shipping volume declined. Many of the upcoming reductions will come from not filling roles left vacant by part-time employees who leave, according to Dykes.

UPS reported approximately 490,000 employees in its 2024 annual report, including nearly 78,000 management employees. Updated employment figures for 2025 were not immediately available. The workforce is unionized.

Revenue Outlook and Volume Trends

UPS projected 2026 revenue of $89.7 billion, compared with $88.7 billion in 2025. Analysts surveyed by LSEG expected nearly $88 billion.

The company said it expects revenue to decline in the first half of 2026 as it completes the Amazon glide-down, then rise sequentially in the second half once those reductions are finalized.

Separately, UPS is working to stabilize shipping volumes following the end of U.S. duty-free de minimis shipments from China-linked discount retailers such as Shein and Temu.

Fourth-Quarter Performance

UPS reported fourth-quarter consolidated revenue of $24.5 billion, exceeding analyst estimates of $24 billion. On an adjusted basis, the company posted earnings of $2.38 per share for the quarter ended Dec. 31, compared with expectations of $2.20 per share.

Revenue per piece rose despite lower overall shipment volumes. In the U.S. domestic segment, revenue per piece increased 8.3%. International revenue per piece rose 7.1%, supported by the company’s focus on higher-margin shipments.

Excluding Amazon, peak holiday season volume produced mixed results. Small and medium-sized business shipments performed slightly better than expected, while large retailer volume came in weaker year over year, Dykes said.

Fleet Retirement and Related Charge

UPS also confirmed that it will retire its remaining MD-11 cargo aircraft by the end of 2025, accelerating a previously announced plan. The retirement followed a fatal crash involving an MD-11 aircraft in November. Replacement Boeing 767 aircraft are already scheduled for delivery.

The company recorded a non-cash, after-tax charge of $137 million related to the MD-11 fleet retirement.

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