UPS to Close 22 Sortation Centers, Decouple 50% of Amazon Shipments by June
UPS will close 22 unionized sortation centers in 18 states this year as part of a five-year plan to shutter 200 facilities for network consolidation and automation. It will decouple 50% of Amazon shipments by June and outsource economy last-mile deliveries to the U.S. Postal Service to improve profitability.
1. Network Consolidation Plan
UPS is closing 22 unionized sortation centers in 18 states this year and targets 200 closures over five years under its Network of the Future strategy, aiming to align capacity and labor with declining parcel volumes through automation.
2. Impact on Amazon Logistics
As part of profitability improvements, UPS will decouple half of its Amazon volume by June and route certain economy shipments to the U.S. Postal Service for last-mile delivery, shifting unprofitable routes away from UPS.
3. Workforce Measures and Union Response
UPS plans to eliminate 30,000 jobs via attrition and buyouts, offering up to $150,000 plus benefits to incentivize drivers, while reserving the right to involuntary layoffs; the Teamsters union is challenging the voluntary separation program in federal court.