The American logistics giant UPS has announced a large-scale restructuring: in 2026, the company intends to cut up to 30,000 operational jobs and close 24 facilities in the first half of the year. The news has already caused a wide resonance in the U.S. transportation industry and among company employees.
UPS officially announced its optimization plans on January 27, 2026, as part of the publication of financial results and the forecast for 2026. The management called the next year a “turning point” for the company.
In the UPS release, it is stated:
“2026 will be a key stage in the transformation of our network and the completion of strategic changes.”
The full document is published on the company's website:
UPS Releases 4Q 2025 Earnings and Provides 2026 Guidance
The main reason is the change in freight flow structure and the reduction of dependency on low-margin contracts, including the gradual reduction of delivery volumes for Amazon.
According to the Associated Press, UPS continues to restructure its network to focus on more profitable areas such as medical logistics and premium delivery services.
AP reports:
the company plans to close 24 facilities already in the first half of 2026, and the cuts may affect tens of thousands of employees.
Source:
UPS plans to cut 30,000 jobs, close 24 facilities in 2026
The topic of layoffs is particularly sensitive as UPS is one of the largest employers in the U.S. transportation sector, and a significant portion of drivers and warehouse workers are members of the Teamsters union.
Back in July 2025, the union sharply criticized voluntary employee departure programs, stating that such measures contradict labor agreements.
Teamsters then stated:
“We will fight any attempts to cut jobs in violation of the contract.”
Official union statement:
Teamsters Statement on UPS Buyout Program
It is important to understand: layoffs of this scale in the U.S. are usually accompanied by mandatory notifications under the WARN (Worker Adjustment and Retraining Notification Act). This means that specific facility closures and layoffs will appear in official state notifications.
At the moment, UPS has not published a full list of the facilities to be closed, so the industry should closely monitor regional announcements in the coming months.
Although UPS remains a resilient company, such steps may affect the entire logistics chain:
- competition for jobs among drivers and warehouse workers will intensify
- some freight flows may shift to other carriers
- changes in delivery times in certain regions are possible
- small transportation companies may gain new opportunities amid the redistribution of volumes
UPS's cuts in 2026 are not just a corporate cost-saving measure but a signal of the ongoing transformation of the entire American logistics sector. The company is restructuring its network to meet new market realities, but the consequences will be felt by employees, customers, and transportation partners.
In the coming months, the key question will be: which facilities will be closed and how extensive the actual layoffs will be.
If you work in the freight or logistics sector, it is worth closely following updates — this process may change the market much more significantly than it seems at first glance.