|
Last year, UPS started on a plan to reduce dependency on its
largest customer, Amazon, and focus on higher-profit areas such
as healthcare customers.
Chief Financial Officer Brian Dykes said during the company's
conference call on Tuesday that the job cuts will be made
through a voluntary buyout offer for full-time drivers and
through attrition.
“This is a tactical move,” he said during a call with analysts.
“We did something similar last year in order to help us to
right-size the position levels and the network infrastructure
with the new volume and delivery levels."
UPS is also looking to close 24 buildings in the first half of
the year and is evaluating additional buildings to close later
in the year, he added.
UPS said in a regulatory filing in October that it had cut about
34,000 operational positions and closed daily operations at 93
leased and owned buildings during the first nine months of last
year. The company also announced approximately 14,000 job cuts,
mostly within management.
According to FactSet, UPS employs about 490,000 workers.
In April, UPS announced that it was looking to slash about
20,000 jobs and close more than 70 facilities as it drastically
reduces the number of Amazon shipments it handles. The company
said in January 2025 that it had reached a deal with Amazon, its
biggest customer, to lower its volume by more than 50% by the
second half of 2026.
CEO Carol Tome said during the conference call that by the end
of 2025 UPS had reduced Amazon’s volume in its network by
approximately 1 million pieces per day.
“We’re in the final six months of our Amazon accelerated glide
down plan, and for the full year, 2026, we intend to glide down
another million pieces per day, while continuing to reconfigure
our network,” Tome said.
UPS also said it was officially retiring its fleet of McDonnell
Douglas MD-11 cargo planes after a deadly crash in Louisville,
Kentucky in November. The planes, about 9% of the UPS fleet, had
been grounded.
Shares of United Parcel Service Inc. rose 3.4% in afternoon
trading.
All contents © copyright 2026 Associated Press. All rights reserved
|
|
