UPS, one of the prominent logistics firms in America, announced on Thursday that it will offer voluntary buyout deals to its full-time U.S. drivers. This move is part of the largest network reorganization in the company’s history. Under the plan, UPS expects to cut its workforce by 20,000 jobs and shut down 73 operational centers.
The Atlanta-based carrier explained that the decision follows an April announcement to adjust its delivery network. The restructuring was driven by a drop in shipments from its principal customer, Amazon.com, and by tariffs imposed by the Trump administration. These developments come as UPS confronts shifting market conditions and evolving trade policies.
UPS stated that the buyout deal is offered in addition to standard retirement benefits, such as pension and healthcare coverage. Meanwhile, the labor union representing roughly 330,000 UPS employees strongly criticized the proposal. Union leader Sean O’Brien argued that the approach breaches the terms of their national agreement, which had promised 22,500 new positions. UPS affirmed it would honor the contract and meet its commitments. UPS remains resolute.