UPS expects to cut as many as 30,000 positions this year, part of an ongoing effort by the package-delivery giant to rein in costs and boost profitability.

The reductions to its operational workforce — a group that includes drivers and package handlers — will be achieved largely through attrition and voluntary separation agreements with full-time drivers, Chief Financial Officer Brian ⁠Dykes said on a January 27 conference call to discuss quarterly financial results. The move comes after UPS said in October that it was eliminating 34,000 operational positions in 2025.

The courier has been closing and consolidating dozens of sorting facilities, offering buyouts to union drivers and cutting back on seasonal workers to trim expenses. It has also been slashing delivery volume for its largest customer, Amazon, to cut down on low-margin packages.

Earnings in the fourth quarter were $2.38 a share, UPS said, topping the $2.21 average of analyst estimates compiled by Bloomberg. Sales of $24.5 billion also beat expectations.

UPS offered an annual sales forecast for the first time in a year, a signal that the Atlanta-based courier is regaining visibility into demand conditions after tumultuous trade policies muddied the picture last year. The company expects revenue of about $89.7 billion in 2026, compared with $87.95 billion anticipated by analysts.

“The results show strong execution with more to come in 2026 and 2027,” Stephanie Moore, an analyst at Jefferies Financial Group Inc., wrote in a note.

Cost Savings

UPS said its cost-cut plan resulted in about $3.5 billion of savings in 2025 compared with the year before, in line with its expectations. The company is grappling with high costs in its hourly workforce, thanks in part to a hefty labor contract it signed several year ago with 330,000 members of the International Brotherhood of Teamsters.

The challenges have been compounded by disruptions to international commerce under President Donald Trump’s trade policies.

UPS also faced operational hurdles last quarter following a November crash of one of its MD-11 jets near UPS’ main hub in Louisville, Kentucky. The Federal Aviation Administration had issued a grounding of all MD-11s pending inspection and fixes.

The company said on January 27 that it retired its MD-11 fleet during the quarter. UPS will replace the lost capacity with 18 Boeing Co. 767 planes, of which 15 are scheduled to be delivered this year.