UPS Deepens Network Reset With 2026 Cuts as Analysts Raise Targets
Management is relying on attrition and voluntary buyouts to shift its mix away from low‑margin Amazon work.
Overview
- UPS plans to reduce its workforce by up to 30,000 and close 24 facilities in 2026 as it completes its Amazon volume glide‑down.
- Chief Financial Officer Brian Dykes said the reductions will occur through attrition and another buyout offer for full‑time drivers, with no layoffs planned.
- Bernstein raised its UPS price target to $128 and kept an Outperform rating, citing very strong Q4 2025 results and guidance with better‑than‑expected revenue but softer margins.
- Susquehanna lifted its target to $115 and maintained a Neutral stance, noting a manageable setup as the next phase of the Amazon scale‑back hits in the first half of 2026.
- Following 48,000 job cuts and 93 site closures in 2025, UPS expects revenue to decline in the first half of 2026 and improve sequentially in the second half as the transition takes hold.