Amazon effect hits logistics giant: 30,000 people to be laid off

United Parcel Service (UPS) Chief Financial Officer (CFO) Brian Dykes made significant statements regarding the company's 2026 strategies during an investor conference held after the company shared its financial results for the final quarter of the year.

THE AMAZON EFFECT

Dykes stated that they plan to reduce operational labor hours by approximately 25 million hours in parallel with the contraction in Amazon delivery volumes. In this context, he shared the information that a total of 30,000 positions would be eliminated.

It was stated that the workforce reduction would be implemented through employee attrition and a new voluntary separation package to be offered to full-time drivers, rather than through mandatory layoffs.

FACILITY CLOSURES ON THE AGENDA

The company's balance sheet notes indicated that 24 facilities have been identified for closure in the first half of 2026, and that additional closures are being evaluated for the second half of the year.

LARGER CUTS THAN LAST YEAR

UPS had previously announced to the public in its third-quarter 2025 balance sheet that a total of 48,000 employees, primarily in operational staff, had been laid off. The planned cuts this year signal that the company's process of reshaping its cost structure is ongoing.

News Source: 12punto