Tens of thousands of job cuts are expected this year at the U.S. Postal Service and UPS as both organizations seek to reduce costs and streamline operations. The reductions come as effects of digital innovation and economic shifts continue to reshape the delivery industry landscape.
United Parcel Service announced last week it would cut 20,000 jobs globally this year, representing about 4% of its workforce. The company also plans to close 73 distribution facilities by the end of June. UPS stated it is executing its largest network reconfiguration effort to align capacity with expected volume levels and enhance productivity through automation.
Part of UPS's plan involves increasing automation at 400 facilities. The company also recently finalized a deal with Amazon, its largest customer, to significantly reduce business operations by the latter half of 2026.
Teamsters union leadership stated they would oppose any cuts impacting their members. Teamsters General President Sean M. O’Brien asserted the union's contract requires UPS to create 30,000 union jobs.
For its part, the USPS plans to phase out 10,000 positions. Then-Postmaster General Louis DeJoy announced the move in March, noting assistance from Elon Musk's Department of Government Efficiency, a non-governmental entity.
The cuts are part of the Postal Service's efforts to address substantial financial losses, which totaled close to $100 billion previously and were projected to grow by another $200 billion. USPS employed 533,724 people as of 2024.
The Postal Service's Delivering for America plan, introduced in 2021 and updated last year, aims to improve operational efficiency, service reliability, and financial stability. The plan notes a sharp decline in mail volume over the last decade. The number of collected letters and postcards dropped from 57 billion in 1997 to just 12 billion in 2023, an 80% reduction.
To address this decline, the Postal Service is reconfiguring its collection and transportation processes. Mail transport between processing facilities and post offices will decrease from twice daily to a single morning trip. This change aims to optimize regional transportation and cut unnecessary routes.
While UPS expects no effect on customer experience despite the job cuts and increased automation, the U.S. Postal Service anticipates some changes to estimated delivery time. These adjustments began April 1 and will continue through July 1. Delivery times for first-class mail, including letters and postcards, will remain one to five days. However, priority mail express is changing from one to two days to one to three days depending on drop-off time. Delivery of marketing mail, magazines, and newspapers is expected to be faster, though specific details were not provided.
Customers can check the Service Commitments tool online for delivery time estimates by providing origin and destination ZIP Codes, date, and time.
“If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way,” said Sean M. O’Brien, president of Teamsters General. “But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”
