UPS announced it will cut 30,000 jobs as part of a plan to reduce Amazon deliveries. UPS job cuts will mainly happen through voluntary buyouts for full-time drivers. The company also plans to not replace staff who leave on their own. UPS executives say these changes will help protect profit margins. The company reported earnings of $24.5 billion for the last quarter. It also expects revenue to rise to $89.7 billion next year. UPS job cuts come as the firm focuses on more profitable customers. The company wants to serve sectors like healthcare instead of relying heavily on Amazon.
UPS began reducing its dependence on Amazon last year. The plan involves closing facilities and lowering daily deliveries. Last year, UPS cut 48,000 jobs and shut 93 centers. This year, it will close 24 more facilities in the first half. “We are in the final stage of our Amazon reduction plan,” said CEO Carol Tome. “We plan to reduce another million packages per day while reorganizing our network.”
UPS has around 490,000 employees. About 78,000 of them work in management. The company has a unionized workforce. In addition, UPS is retiring its MD-11 cargo planes after a deadly crash in Louisville. These planes make up 9 percent of the fleet and have been grounded since the incident. The company’s stock rose slightly in trading following the announcement. UPS is moving away from Amazon as the retail giant expands its own delivery network. Amazon handled more deliveries than UPS and other carriers last year. Experts expect Amazon to continue growing and eventually surpass the US Postal Service in delivery volumes.
UPS job cuts show the company is serious about restructuring and improving profitability. The focus on higher-margin clients aims to strengthen the company in the long term. The decision reflects changing trends in the delivery industry, where major carriers must adapt to shifts in demand. UPS job cuts will affect thousands, but executives believe the company will benefit financially. With fewer Amazon deliveries, UPS can invest more in specialized and profitable services.
