UPS Cuts 30,000 Jobs and Shaves $5B Revenue While Boosting Margins
UPS projects first-quarter domestic margins of 4%-5% on revenue down low-to-mid single digits, with full-year domestic revenue up low-single digits and an operating margin near 8% as efficiency measures take effect. The company will eliminate 30,000 jobs, close 24 sort centers and reduce Amazon volume by 2 million pieces per day, shedding $5 billion in revenue.
1. First-Quarter Outlook and Profitability
UPS expects first-quarter domestic margins of 4%-5% on revenue down low-to-mid single digits from last year, and is targeting low-single-digit domestic revenue growth with an approximate 8% operating margin for the full year as efficiency improvements begin to flow through.
2. Network Restructuring and Cost Reductions
Following elimination of 34,000 roles and 93 facilities in 2025, UPS plans to cut an additional 30,000 jobs and close 24 parcel sort centers in 2026, offering $150,000 voluntary buyouts to unionized delivery drivers while outsourcing portions of its Ground Saver product.
3. Strategic Shift Toward Premium Services
UPS will reduce Amazon throughput by 2 million pieces per day by end-June, shedding $5 billion in revenue, and is refocusing on higher-margin segments such as small-and-medium business, B2B and healthcare to build a more agile, profitable network into 2027.