UPS says it would cut up to 30,000 jobs this year as it aims to boost turnaround

Core Viewpoint - United Parcel Service (UPS) is implementing significant workforce reductions and strategic changes to enhance profitability and focus on higher-margin shipments while projecting a revenue increase for 2026 [1][4]. Group 1: Workforce Reductions - UPS plans to cut up to 30,000 operational roles by 2026, adding to the 48,000 jobs already reduced in 2025 [1][3]. - The workforce reduction will be achieved through attrition and a voluntary separation program for full-time drivers, as stated by the CFO [2]. Group 2: Financial Performance - UPS exceeded Wall Street estimates for quarterly results during the holiday period and anticipates a rise in annual revenue, projecting 2026 revenue at $89.7 billion, up from $88.7 billion reported last year [1][4]. - Analysts had expected revenue to be around $87.94 billion, indicating a positive outlook for the company [4]. Group 3: Strategic Changes - The company is shifting away from low-profit deliveries for Amazon, which it described as "extraordinarily dilutive" to margins, as part of its strategy to improve profitability [2]. - UPS is also stabilizing volumes after the end of US duty-free, low-value e-commerce shipments, and aims for approximately $3 billion in savings in 2026 [3].