UPS has reached a deal with the Teamsters to cap its buyouts for drivers, following claims from the union that UPS had violated collective bargaining terms when the company rolled out a sweeping nationwide buyout program earlier this year.

According to an April 5 release from the Teamsters, the deal limits to 7,500 the number of voluntary severance packages UPS can offer to drivers, and bans any new unilateral severance programs through 2028. UPS will also be permitted to enact capped buyouts as part of its "Driver's Choice Program" across all 50 states, after it was initially forced to pull the DCP in 13 states in response to grievances filed by the union in March. Drivers who accept a DCP buyout will receive a $150,000 lump-sum payment, with offers made first to long-haul feeder drivers and regular package car drivers, based on seniority.

“UPS never had the contractual right to unilaterally offer driver buyouts, but with enough pressure and member solidarity UPS finally did the right thing by putting its commitments to hardworking Teamsters down in writing,” said Teamsters president Sean O'Brien.

Over the last year, UPS has sought to slash tens of thousands of positions across the company, as it's struggled financially and managed the fallout from the wind-down of its partnership with Amazon. The company reported nearly 50,000 layoffs in 2025, and expects to cut another 30,000 jobs by the end of this year. 

When UPS rolled out its Driver's Choice Program in late January, roughly 105,000 drivers were eligible for the buyout package offered by the company. UPS paused the DCP in 13 states in late March after local unions filed grievances, triggering negotiations between the company and the Teamsters over the program's scope.