Last year’s corporate layoffs reached 1.2 million, up 15% from 2024 and marking the highest annual total since 2009, driven by cuts in tech, retail and manufacturing. This wave of job losses narrowed consumer spending power, eroding e-commerce growth and freight demand late in the year.

Open positions declined to 8.7 million by December, the lowest level since mid-2023, while January 2026 brought only 75,000 new hires—the weakest monthly gain since 2020. Companies are delaying recruitment in face of economic uncertainty and elevated operating costs.

Slower hiring and elevated unemployment are likely to curb consumer parcel volumes and B2B shipments, pressuring UPS revenue growth in coming quarters. UPS may respond by recalibrating capacity utilization, revising service rates and optimizing its ground network to protect margins.