UPS to cut another 30,000 jobs as it doubles down on turnaround

[WASHINGTON] United Parcel Service on Tuesday (Jan 27) said it would cut up to 30,000 operational roles in 2026, adding to last year’s job reductions as the delivery giant looks to accelerate a turnaround fuelled by a pivot to higher-margin shipments.

The company also beat Wall Street estimates for quarterly results in the all-important holiday period and forecast a surprise rise in annual revenue.

UPS in January last year said it would accelerate a plan to slash millions of low-profit deliveries for Amazon.com, its largest customer and a growing delivery rival, calling the business “extraordinarily dilutive” to margins.

The workforce reduction will “be accomplished through attrition and we expect to offer a second voluntary separation programme for full-time drivers”, chief financial officer Brian Dykes said on a post-earnings call.

UPS is also looking to rebuild its profitability and stabilise volumes following the end of US duty-free, “de minimis” low-value, e-commerce shipments.

The company has cut 48,000 jobs, launched driver buyouts, and closed operations at 93 facilities in 2025 as it targets about US$3 billion in savings in 2026.

UPS recorded a non-cash, after-tax charge of US$137 million related to writing off the MD-11 fleet following a deadly November crash. UPS said it completed the retirement of the fleet in the fourth quarter.

The company projected 2026 revenue to be US$89.7 billion, compared with the US$88.7 billion it reported last year. Analysts on average had expected revenue of US$87.94 billion, according to data compiled by LSEG.

It forecasts adjusted operating margin of 9.6 per cent for 2026.

“UPS generated another quarterly beat, primarily through (revenue per piece) upside in both domestic and international, continuing the better-than-expected pricing theme of the last few quarters,” Evercore ISI analyst Jonathan Chappell said.

UPS reported fourth-quarter consolidated revenue of US$24.5 billion, above estimates of US$24 billion.

The peak holiday shipping season, from late November into early January, is critical for parcel carriers as their average daily volumes can double, with companies often adding seasonal surcharges.

Revenue per piece in the company’s US domestic segment rose 8.3 per cent despite lower volumes, while international revenue per piece increased 7.1 per cent, benefiting from its push toward higher-margin shipments.

On an adjusted basis, UPS reported a profit of US$2.38 per share, for the quarter ended December 31, above estimates of US$2.20. REUTERS