Logistics firm United Parcel Service (UPS) said Tuesday that it plans to cut another 30,000 jobs this year as it continues to wind down its partnership with e-commerce Amazon (AMZN) and move ahead with a multi-year turnaround plan. On the company’s earnings call, CFO Brian Dykes explained that the pullback from Amazon will lead to about 25 million fewer operational work hours. To adjust, UPS expects to eliminate up to 30,000 operational roles. Most of these cuts will happen gradually over time, and the company plans to offer a second voluntary separation program for full-time drivers.
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These new cuts add to a large round of layoffs that were already completed last year. Indeed, UPS eliminated about 48,000 jobs in total in 2025, including 34,000 operational roles and 14,000 management positions. That figure was far higher than the roughly 20,000 reductions the company had originally expected.
It’s worth noting that these changes are part of a turnaround plan being led by CEO Carol Tomé. While Amazon was once UPS’ largest customer, both companies are now gradually reducing the amount of business they do together. Importantly, UPS said that this shift alone is expected to generate about $3 billion in savings over time. Meanwhile, the company reported fourth-quarter earnings that beat Wall Street expectations, which suggests that its turnaround strategy is beginning to show progress.
Is UPS Stock a Good Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on UPS stock based on eight Buys, eight Holds, and three Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average UPS price target of $106.06 per share implies 4% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
