The UPS terminates Amazon delivery emphasis with an ambitious plan of transforming its future and reducing expenses. The firm has indicated that it will lay off at least 30,000 people this year because it will be making smaller shipments to Amazon.
This transformation represents a great difference between its long history with its largest customer. The deliveries made by Amazon to UPS have been reported to be dilutive of profit margins and growth prospects of the company.
The cutbacks follow a sharp reduction in Amazon packages in 2025 and the intentions to shut down additional facilities at the beginning of 2026. Expansion of other more profitable markets like healthcare logistics and specialised freight services are also targeted by UPS.
The broader effect of the logistics industry might transform the world delivery trends. This is viewed by analysts as a strategic shift to high margin business.
 UPS delivery centre with packages to be shipped, as part of a huge reorganisation. [FreightWaves]
What Does This Mean For The UPS Amazon Partnership?
The UPS-Amazon relationship that has served long enough is in a new era as UPS loses parcel volume with Amazon. In ensuring that it reconfigures its network, UPS executives said the company will ship another million pieces per day in 2026.
Amazon has created its own delivery system and made 6.3 billion deliveries in the US in 2024. That amount was higher than UPS and its competitors, indicating the increasing in-house logistics strength of Amazon.
UPS stated that it was no longer depending on Amazon as much as it was previously as part of its turnaround strategy and long-term profitability objectives. This is after the reduction of 48,000 jobs and the shutdown of 93 facilities in 2025 associated with the reduced volume of Amazon.
It also highlights general changes in e-commerce delivery, whereby customers expect speedy and cheap delivery. The new priorities and partnerships that UPS is pursuing are changing to fit that changing market. Now it is concentrated on the more stable revenue stream and less volatile sectors.
UPS Corporate Restructuring 2026 Has Broad Implications
UPS corporate restructuring 2026 is going to redefine both the human and non-human resources of the enterprise and reduce expenses and risk factors. The company confirmed that buyouts will be available to the full-time drivers, and voluntary leavers will not be replaced.
The restructuring is needed, according to CEO Carol Tome, to respond to demand capacity. Moreover, UPS will end its MD-11 cargo fleet following a fatal accident that occurred in November in Louisville, Kentucky.
These planes constituted approximately 9 per cent of the fleet of carriers and have been off the ground since the accident. UPS indicated that it earned $24.5bn in the last quarter of 2025 and that it expects to earn $89.7 billion in the year 2026. Shareholders responded favourably as the stock markets ended up on an uplift in New York.
The management and unionised workforce of the company is a part of a massive staff numbering approximately 490,000 individuals. The radical reorganising of UPS shows that logistics companies have to strike a balance between labour, machine and market changes.
Carol Tome says restructuring matches demand; UPS retires MD-11 fleet after crash. [CNBC]
What Are The Workforce Impacts Of UPS Ending Amazon Focus?
The effect on the workforce will be severe because under UPS’s corporate restructuring 2026, UPS will terminate its Amazon delivery focus and change its strategy. Amazon will reduce the number of jobs to up to 30,000 this year as the volume of parcels declines.
The cuts are after massive layoffs and closed facilities a year before. The reductions will be caused by buy-out offers and voluntary departures, as reported by UPS. It is anticipated that with the level of jobs in line with the demand, the management will be less burdened with the operations.
There are those in the industry who are worried that there will be local disturbances in communities that are dependent on UPS employment. Others view the possibility of reinvention of workforce to new lucrative logistics divisions.
The company will target the areas of healthcare delivery, specialised freight and other stable markets. The experience of UPS in this transition may have precedents on other couriers in the world.
UPS Ends Amazon Delivery Focus To Seek Profit Stability
UPS stops Amazon deliveries to focus on profitability. The company referred to the Amazon shipments as extraordinarily dilutive to the margins of the company.
Minimising dependency can help UPS provide services to the sectors that have better returns. This involves industrial freight, dedicated contract services and medical logistics. According to analysts, the change would be beneficial to UPS to gain a competitive advantage over its competitors, such as FedEx and USPS.
The delivery development of Amazon itself competes with the traditional carriers and changes the expectations of the delivery of parcels. Restructuring priorities, UPS targets to increase its price-setting and financial strength. The result will be critical in the future market standing of UPS as well as shareholder trust.
UPS operations centre on the diverse logistics service. [UNIS]
How Will Amazon’s Delivery Expansion Affect UPS?
The UPS and the logistics sector have issues and opportunities with the growth of Amazon deliveries. Amazon is striving to beat the other airlines in terms of its network and volume.
It is estimated that by 2028, Amazon might be doing more deliveries than the US Postal Service. UPS needs to evolve by diversifying services other than e-commerce packages.
The changing freight environment challenges carriers to be innovative and to specialise. The risks may be buffered by the fact that UPS targets high-value shipping and the healthcare sector. Nevertheless, the struggle among business clients will increase among carriers.
Fast changes and adjustments of services and pricing could be realised in the global markets. The ability of UPS to maintain revenue and lower its reliance on the past will be tested in the future.
Also Read: Sendle Shutdown Shocks Small Businesses, Triggers Delivery Disruptions
FAQs
Q1: Why Is UPS Reducing Deliveries For Amazon?
UPS says Amazon volumes hurt profit margins and hinder service quality in other sectors.
Q2: How Many Jobs Will UPS Cut In 2026?
UPS estimates up to 30,000 job cuts through buyouts and non-replacement of voluntary leavers.
Q3: What Happens To UPS’s Cargo Planes?
UPS is retiring its MD-11 fleet that accounted for about 9 per cent of planes after a crash.
Q4: Will UPS Still Deliver Parcels For Amazon?
UPS will continue deliveries but at reduced volumes under its new strategic focus.
