UPS is planning a major shift in 2026, reducing up to 30,000 operational jobs, which translates to about 6% of its global workforce. Most of the change is expected to happen through attrition, along with voluntary separation offers for full-time drivers.

The largest part of this change will come from a reduction in Amazon volume. UPS aims to cut approximately 1 million packages a day in 2026, bringing its daily Amazon shipments down by roughly half. Amazon has expanded its own delivery network, squeezing the economics for outside carriers. UPS is choosing to free up capacity for work that earns more per package.

An increased focus on healthcare logistics sits at the center of the plan. UPS has been building out cold chain and specialty shipping through recent acquisitions, including Andlauer Healthcare Group and Frigo Trans. These acquisitions aim to expand UPS’s ability to handle temperature-sensitive pharmaceuticals and other shipments that require strict controls. That segment of the market is growing quickly, and customers are less willing to compromise on service.

To maximize cost and network efficiency, UPS plans to close 24 facilities, increase automation, and modernize its fleet, including replacing MD-11 aircraft with Boeing 767s. Management expects the full set of changes to generate about $3 billion in annual savings.

The company ended 2025 with a stronger quarter than expected. Fourth-quarter revenue was $24.5 billion, and UPS guided to $89.7 billion in revenue for 2026, up from $88.7 billion last year. The Teamsters union is pushing back on buyout terms, but investors have responded well to the focus on profitability. UPS is trying to build a steadier business by picking better volume, not more volume.