UPS has announced plans to cut up to 30,000 jobs this year and close at least 24 facilities, as the global logistics group continues to reduce its reliance on delivery volumes from Amazon, its largest customer.

The job cuts represent roughly 6% of UPS’s global workforce and will primarily affect roles linked to package handling and delivery. The announcement follows earlier reductions, after the company eliminated around 20,000 positions last year and closed 93 facilities during 2025 as part of a wider efficiency drive.

The restructuring is tied to a strategic decision to sharply reduce the number of Amazon parcels moving through UPS’s network. The company previously agreed to more than halve Amazon-related delivery volumes by the second half of 2026, citing concerns over profitability rather than scale. Management has indicated that Amazon shipments, while substantial, generate relatively low margins within UPS’s US domestic business.

As part of this transition, UPS has already been cutting Amazon-related volume by approximately one million packages per day, a trend expected to continue into next year. The resulting downsizing reflects what the company describes as a deliberate effort to operate a smaller, more efficient and more profitable logistics network.

Alongside the reductions, UPS is repositioning itself towards higher-margin segments, particularly healthcare logistics. The company is expanding its focus on transporting time-sensitive and regulated goods such as vaccines and medical supplies, an area it views as offering more stable demand and stronger returns than mass-market e-commerce deliveries.

UPS has said the majority of the planned job reductions will be achieved through natural attrition, alongside voluntary buyout offers to full-time drivers. The company has also highlighted the growing role of automation and advanced logistics technology in improving efficiency as the network contracts.

The announcement was made during UPS’s fourth-quarter earnings call, at a time when broader concerns are emerging around the health of the US labour market. While recent data shows job creation slowing, the unemployment rate has remained relatively stable.

UPS currently employs around 490,000 people worldwide, with more than half represented by the International Brotherhood of Teamsters. Despite the restructuring plans, the company reported quarterly revenues of $24.5 billion, beating analyst expectations, while its share price showed little movement following the announcement.