UPS to cut another 30,000 jobs as it doubles down on turnaround

United Parcel Service on Tuesday said it would cut up to 30,000 operational roles in 2026, adding to last year's job reductions as the delivery giant looks to accelerate a turnaround fueled by a pivot to higher-margin shipments.

The company also beat Wall Street estimates for quarterly results in the all-important holiday period and forecast a surprise rise in annual revenue.

UPS in January last year said it would accelerate a plan to slash millions of low-profit deliveries for Amazon.com, its largest customer and a growing delivery rival, calling the business "extraordinarily dilutive" to margins.

The workforce reduction will "be accomplished through attrition and we expect to offer a second voluntary separation program for full-time drivers", Chief Financial Officer Brian Dykes said on a post-earnings call.

The company's shares were down 1% in premarket trading.

UPS is also looking to rebuild its profitability and stabilize volumes following the end of U.S. duty-free, "de minimis" low-value, e-commerce shipments.

The company has cut 48,000 jobs, launched driver buyouts, and closed operations at 93 facilities in 2025 as it targets about $3 billion in savings in 2026.

UPS recorded a non-cash, after-tax charge of $137 million related to writing off the MD‑11 fleet following a deadly November crash. UPS said it completed the retirement of the fleet in the fourth quarter.

The company projected 2026 revenue to be $89.7 billion, compared to the $88.7 billion it reported last year. Analysts on average had expected revenue of $87.94 billion, according to data compiled by LSEG.

It forecasts adjusted operating margin of 9.6% for 2026.

"UPS generated another quarterly beat, primarily through (revenue per piece) upside in both domestic and international, continuing the better-than-expected pricing theme of the last few quarters," Evercore ISI analyst Jonathan Chappell said.

HOLIDAY QUARTER BEAT

UPS reported fourth-quarter consolidated revenue of $24.5 billion, above estimates of $24 billion.

The peak holiday shipping season, from late November into early January, is critical for parcel carriers as their average daily volumes can double, with companies often adding seasonal surcharges.

Revenue per piece in the company's U.S. domestic segment rose 8.3% despite lower volumes, while international revenue per piece increased 7.1%, benefiting from its push toward higher-margin shipments.

On an adjusted basis, UPS reported a profit of $2.38 per share, for the quarter ended December 31, above estimates of $2.20.