UPS’s Strategic Shrinkage: 30,000+ Layoffs & Network Cuts, Ditching Amazon’s Low-Margin Business for High-Profit Medical Logistics
 
UPS has announced plans to cut 30,000+ positions in 2026 (covering drivers, sorters and other operational roles), primarily through natural attrition and voluntary separation agreements.
 
This is a continuation of its profitability-boosting drive: as early as October 2025, the company launched a plan to slash 34,000 roles, alongside actions like closing/consolidating sortation centers, offering driver buyouts, reducing seasonal staffing, and scaling back low-margin Amazon delivery business.
 
Notably, UPS’s 2026 outlook signals strategic confidence:
✅ Projected full-year revenue: ~$89.7B (surpassing market estimate of $87.95B)
✅ Planned capital expenditure: ~$3B (lower than the $3.72B market forecast)
 
The moves all boil down to one core goal: optimize cost structure, boost operational efficiency, and double down on high-margin segments like medical logistics.
 
A classic case of strategic contraction for better growth—trimming low-value business to focus on profitable track in the competitive logistics landscape.