UPS to Cut 20,000 Jobs as Amazon Volumes Drop by 2026

UPS plans to lay off 20,000 employees and shutter 73 facilities as it significantly scales back its partnership with Amazon and adjusts to ongoing economic and trade uncertainties under the current U.S. administration.

In its first-quarter earnings call, UPS leadership revealed plans to reduce Amazon parcel volume by over 50% by June 2026. Executives cited the e-commerce giant’s business as unprofitable and misaligned with UPS’s operational strategy. The company emphasized a focus on more sustainable, high-margin business segments.

UPS did not disclose which jobs will be impacted by the layoffs. The logistics giant employs 406,000 workers in the U.S., more than 75% of whom are union members under the Teamsters National Master Agreement. That agreement obliges UPS to create 30,000 jobs during its term.

“If UPS tries to violate our contract or target union jobs, they’ll face a hell of a fight,” warned Teamsters General President Sean O’Brien in a statement to Reuters.

To offset the Amazon volume decline, UPS is targeting USD 3.5 billion in cost savings by 2025 through workforce reductions and operational streamlining.

UPS Airlines, the company’s air cargo division, operates 293 aircraft, including A300-600Fs, Boeing 747-400s, 747-8Fs, 757-200PFs, and 767 variants. The carrier is gradually retiring its MD-11F fleet, with three aircraft exiting this year.

In Q1 2025, UPS reported USD 21.5 billion in revenue and USD 1.7 billion in operating profit, as it pivots away from lower-yield partnerships to protect long-term margins.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com