UPS has dropped a bombshell by announcing voluntary buyouts for its drivers in a move set to eliminate 20,000 jobs and close down 73 facilities.
See the tweet below!
The decision follows a decrease in shipments for Amazon and tariffs implemented under President Trump’s administration.
The Teamsters union, representing UPS workers, is up in arms, claiming these buyouts breach their national contract.
UPS’s decision to offer voluntary buyouts to their full-time U.S. drivers is a first in the company’s history.
This strategy aims to streamline operations amid declining parcel volumes, influenced by tariffs and a reduction in business with Amazon.
However, the drastic step of axing 20,000 jobs and shutting 73 facilities raises alarms about the future of the workforce.
The company contends these measures are essential for trimming excess capacity and increasing profits.
The “Network of the Future” plan also outlines closing 200 sortation centers over five years and ramping up automation—a clear sign of prioritizing efficiency over personnel.
The buyout package UPS is offering includes benefits like pension and healthcare, yet this doesn’t pacify the Teamsters union.
Teamsters President Sean O’Brien didn’t mince words, stating, “UPS is trying to weasel its way out of creating good union jobs here in America by dangling insulting buyouts in front of Teamsters drivers. It is an illegal violation of our national contract.”
The union insists that UPS needs to fulfill its contractual commitments, including a pledge to add 22,500 jobs.
Despite the controversy, UPS has expressed its commitment to abide by the terms agreed with the union.
It maintains that it has consulted with the Teamsters concerning these buyouts and aims to uphold its end of the deal.
However, with claims of contract violations and potential adverse impacts on retirement healthcare benefits, the conflict is far from over.
On the financial front, these measures are expected to save UPS over $1.2 billion by slashing operating hours and resizing its workforce.
But such gains come at the cost of American jobs and the commitments made to its employees.
UPS’s restructuring is set against the backdrop of an “unprecedented” business environment, as described by CEO Carol Tomé.
UPS plans to offer voluntary buyouts to union-represented delivery truck drivers as the company works to slim down its operations. https://t.co/gvA4rNXTis
— Bloomberg (@business) July 3, 2025
The parcel giant’s struggle with diminishing shipments underscores the broader challenges faced by many companies as they navigate a rapidly changing economic landscape.
The tension between corporate profits and employee welfare remains at the heart of this move.
With 340,000 delivery drivers potentially impacted, the Teamsters union may yet wage a prolonged battle to see that their rights and livelihoods are preserved.
