Image: UPS

UPS has eliminated around 34,000 positions and shut down 93 buildings so far this year, as the delivery giant continues to restructure its U.S. network in response to declining Amazon parcel volumes, according to its Q3 2025 earnings report released on Tuesday.

The job reductions include separations through UPS’s voluntary buyout program for full-time drivers. About 90% of affected drivers left the company on August 31, said Brian Dykes, EVP and CFO of UPS, during the company’s earnings call.

CEO Carol Tomé described the program as a success but did not specify how many drivers accepted the offer. She added that the total cost of the buyouts reached $175 million.

UPS is downsizing its U.S. network to align with a planned 50% reduction in Amazon package volume by June 2026. In Q3, Amazon-related volume handled by UPS declined 21.2% year over year.

Despite handling fewer Amazon parcels, the partnership between the two companies remains significant. “Amazon is still going to be a large customer,” Dykes said, noting that UPS continues to add value through services like returns, inbound shipping, and small-business seller logistics on the Amazon platform.

According to the earnings release, UPS’s staffing and facility reductions have generated about $2.2 billion in savings through Q3, with the company expecting total annual savings to reach $3.5 billion by year-end. UPS is also “identifying additional buildings for closure” as part of its ongoing optimization efforts.

The carrier is working to shift more of its package flow to technology-driven facilities to enhance cost efficiency and operational performance. Over the past year, UPS has deployed new automated systems across 35 facilities, bringing the share of parcels processed through automation to an expected 66% in Q4, up from 63% a year earlier.

“As we enter the peak shipping season, we’ll continue leveraging our proven technologies and scaling our network where needed, while maintaining a strong focus on service quality,” Tomé said. “These advancements position us to run the most efficient peak season in our history.”

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Edited by: Cofast News Editorial Team (according to Supply Chain Dive)

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