By Eliza Schultz and Bill Aiman

Chicago, IL – On Thursday January 30, UPS announced a major cutback in Amazon package deliveries, with the goal of dropping over 50% of the volume from the company’s largest customer by June 2026. In conjunction, UPS is looking to permanently shutter 10% of buildings, shrink their fleet of vehicles and lay off workers.

The plan to close more buildings comes on the heels of the hard fought 2023 Teamsters contract, which resulted in major wage gains for part-timers and the end of the 2-tier system among package car drivers. The credible threat of a strike forced UPS to concede to the union’s demands in contract negotiations and look elsewhere for cost savings. Last year UPS laid off 12,000 corporate employees and announced major investments in the automation of hub operations as part of their “Network of the Future” initiative.