UPS Confirms 48,000 Job Cuts, Closes 93 Facilities in Massive Automation Shift

United Parcel Service (UPS) has confirmed a massive workforce reduction of nearly 48,000 employees as part of a sweeping operational overhaul, according to a report from USA Today. The cuts, which affect approximately 10% of the company’s global workforce, come as the logistics giant pivots toward automation and reduces its reliance on lower-margin delivery contracts.

Key Facts

• Breakdown: The layoffs include roughly 34,000 operational roles (drivers and warehouse staff) and 14,000 management positions.
• Closures: Daily operations have ceased at 93 leased and owned facilities across the United States.
• Financial Impact: The restructuring aims to secure $3.5 billion in annual cost savings.
• Source: USA Today, Supply Chain Dive

The ‘Network of the Future’

UPS CEO Carol Tomé described the move as the “most significant strategic shift in our history.” The company is aggressively moving away from manual labor in its sorting hubs, replacing traditional roles with automated systems under a program dubbed the “Network of the Future.” This initiative focuses on consolidating older, labor-heavy facilities into fewer, high-tech “super hubs” that can process packages with a fraction of the human workforce.

Management stated that the 93 facility closures are necessary to fix network redundancies. By using more robots for sorting and loading, UPS plans to handle the same package volume with significantly fewer hands touching the boxes.

The Amazon Factor

A major driver behind these cuts is the changing relationship with UPS’s largest customer, Amazon. Reports indicate that UPS has deliberately reduced the volume of Amazon packages it carries by nearly 50%. This decision is part of a “better, not bigger” strategy, where UPS is rejecting low-profit residential deliveries in favor of higher-margin business-to-business (B2B) shipments and healthcare logistics.

Management and Efficiency

While operational workers are taking the biggest hit in raw numbers, the 14,000 management cuts represent a deep thinning of the corporate structure. Under an internal plan called “Efficiency Reimagined,” UPS is flattening its management layers to speed up decision-making. The company is offering severance packages to affected non-union employees, though specific terms have not been disclosed publicly. Unionized workers, represented by the Teamsters, face a different process governed by their collective bargaining agreement.