United Parcel Service today announced plans to eliminate up to 30,000 operational positions in 2026, reducing total operational hours by approximately 25 million. The cuts will be achieved through attrition and a voluntary separation program for full-time drivers. In addition, UPS has identified 24 buildings for closure in the first half of the year, following the shuttering of 93 facilities in 2025. CFO Brian Dykes said these actions are directly tied to the company’s decision to unwind low-margin package volumes with its largest logistics partner, targeting $3 billion in savings from that reduction alone.

In the fourth quarter of 2025, UPS reported consolidated revenues of $24.5 billion, down 3 percent year-over-year, but topping consensus estimates. Adjusted operating profit reached $2.9 billion, although this represented a 7 percent decline versus the prior year. GAAP operating profit was $2.6 billion, impacted by $238 million in charges, including a $137 million non-cash write-off of the MD-11 aircraft fleet and $101 million in transformation costs. The U.S. Domestic segment saw revenue per piece rise 8.3 percent, offsetting a 3.2 percent volume drop, while the International segment delivered 2.5 percent revenue growth and an adjusted operating margin of 18.0 percent.

CEO Carol Tomé outlined a strategic shift from volume to margin, with plans to complete the glide-down of dilutive volumes by late 2026 and to focus investment on healthcare, small-and-medium-business and cross-border B2B shipments. UPS expects 2026 to be an inflection point, targeting $89.7 billion in revenue and an adjusted operating margin of 9.6 percent. Automation investments have already yielded a 28 percent lower cost-per-piece in automated facilities compared to traditional sites. The company also plans capital expenditures of $3 billion and dividend payments totaling $5.4 billion, reflecting confidence in free cash flow generation through its multiyear turnaround.