Parcel delivery firm UPS has announced plans to reduce its workforce by as many as 30,000 roles during 2026, as it continues to cut back the volume of parcels it handles for its largest customer, Amazon. The move forms part of a wider restructuring strategy aimed at reshaping the business and improving long-term profitability.

The company began scaling back its reliance on Amazon last year, shifting its focus towards higher-margin areas such as healthcare logistics. As part of this transition, UPS has already reduced its global workforce by around 48,000 positions. The latest reductions are expected to be achieved mainly through natural staff turnover, with a second voluntary severance scheme planned for full-time drivers.

UPS chief financial officer Brian Dykes said the company was targeting cost savings of around $3bn (£2.2bn) linked to what it describes as its “Amazon glide-down” strategy. Despite the job cuts, the business reported consolidated revenues of $24.5bn (£17.7bn) in the final quarter of 2025 and is forecasting revenues of $89.7bn (£70.9bn) for 2026.

Chief executive Carol Tomé said the company is entering the final phase of its accelerated plan to reduce Amazon parcel volumes, with a further one million parcels per day set to be removed from the network this year. She added that the deliberate downsizing of operations was being supported by tighter planning, automation and new technologies, helping UPS operate a smaller but more efficient delivery network.