UPS to Shed 30,000 More Jobs and Retire MD-11 Fleet Amid Profit-Driven Pivot

United Parcel Service (UPS) announced plans to eliminate up to 30,000 operational positions in 2026. This move aligns with the company's strategic pivot away from low-margin volume, particularly deliveries for its largest customer, Amazon. The world’s largest package delivery company also plans to shut down 24 more facilities.

This follows a significant restructuring in 2025. Last year, UPS cut 48,000 jobs and closed operations at 93 buildings. The 2026 job reductions will occur through attrition. UPS also plans to offer another voluntary separation program for full-time drivers. Layoffs are not currently planned, according to Chief Financial Officer Brian Dykes.

Strategic Network Reconfiguration

UPS is now in the final phase of its "Amazon accelerated glide down" plan. CEO Carol Tomé stated the goal is to cut another million pieces per day in Amazon volume during 2026. The company previously called the low-profit Amazon business "extraordinarily dilutive" to margins.

This reduction in volume is designed to reconfigure the UPS network. The aim is to create a more agile and profitable operation. UPS is focusing on higher-margin shipments from other customers.

• The company expects revenue to drop in the first half of 2026.
• Revenue should then rise sequentially in the second half.
• This rise is expected once the Amazon volume reductions are complete.

Financial Performance and Outlook

The announcement came alongside better-than-expected fourth-quarter 2025 results. Consolidated revenue for the quarter was US$24.5 billion, surpassing Wall Street estimates. Adjusted profit was reported at $2.38 per share.

UPS projected 2026 annual revenue of US$89.7 billion. This forecast is a surprise increase over 2025 revenue. It also topped the average analyst expectation of almost US$88 billion. The domestic segment saw revenue per piece rise by 8.3%. International revenue per piece increased by 7.1%. This shows the benefit of the push toward higher-margin cargo.

Accelerated Fleet Modernization

In a separate but related operational move, UPS accelerated its fleet modernization plans. The company confirmed it retired its remaining McDonnell Douglas MD-11 freighter fleet. This retirement was completed by the end of the fourth quarter of 2025.

This accelerated phase-out followed a deadly crash in November 2025. UPS Airlines Flight 2976, an MD-11, crashed shortly after takeoff from Louisville, Kentucky. The accident tragically killed 15 people. The retirement of the MD-11 fleet resulted in a significant after-tax charge.

The aging tri-jet cargo aircraft are being replaced. New, more fuel-efficient Boeing 767 freighters are already scheduled for delivery. This fleet change is a major shift for the cargo aviation sector. It highlights a move toward modern, twin-engine aircraft. This transition is expected to improve operational efficiency and safety.

UPS is also working to stabilize volumes from other areas. This includes e-commerce shipments from China-linked discount retailers. This follows the end of US duty-free, "de minimis" low-value shipments.

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