UPS has identified 22 package sortation centers with union employees in 18 states, including key hubs in Dallas, Miami, Baltimore and Atlanta, for shutdown in 2026. This marks the first public disclosure of the specific locations under the Network of the Future plan, with no additional closures planned at this time.

The Network of the Future initiative aims to close 200 sortation centers over five years to better align capacity and labor with declining parcel volumes. UPS is also on track to decouple 50% of its deliveries for its largest customer, Amazon, by June and has agreed to outsource certain economy shipments to the U.S. Postal Service.

UPS plans to eliminate 30,000 jobs in the first half of the year by closing 24 facilities and reducing headcount through attrition and driver buyouts. The company will offer $150,000 plus accrued benefits to over 100,000 drivers as an incentive to resign, while reserving the option to enforce involuntary layoffs if separation targets aren’t met, a program currently challenged by the Teamsters union.