UPS To Slash 20K Jobs, Offer Buyouts To Union Drivers

ATLANTA, GA — In a potentially controversial move, Atlanta-based UPS is expected to offer voluntary buyouts to its full-time drivers and cut 20,000 jobs against the wishes of the union that represents them.

News broke Thursday that the United Parcel Service, one of the world's major parcel companies, could close 73 facilities as the popular business reconfigures its inner workings, Reuters reported.

In doing so, UPS is planning to offer its union drivers the option to accept money in exchange for early retirement or for the drivers to quit their jobs, according to the Teamsters union, which represents the drivers.

This comes after UPS said it would scale back on its Amazon shipments during President Donald Trump's tariffs, Reuters reported.

A Bloomberg report said UPS shares on Thursday morning dropped less than 1 percent, and its stock has gone down 16 percent so far this year.

It was not immediately known where or when UPS intends to shrink jobs. The buyout package would include retirement benefits, Reuters reported.

"For the first time ever, in recognition of these unique circumstances, we are looking to offer our full-time U.S. drivers the opportunity to participate in a voluntary program that would provide an opportunity to receive a generous financial package if they choose to leave UPS," the parcel company said Thursday in a statement, per Axios.

The concept of buyouts has drawn criticism from Teamsters, which stated UPS previously agreed in a contract to fill 22,500 additional full-time jobs with part-time union workers.

Overall, Teamsters represents 340,000 UPS delivery drivers, according to the union. Teamsters has called UPS' awaited severance plan "illegal" and claimed drivers would not receive "quality health insurance" in the buyout.

The Teamsters' five-year contract with UPS was revised in August 2023, when the union claimed UPS agreed to establish at least 7,500 additional full-time jobs in the contract's last three years.

“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," Teamsters General President Sean M. O’Brien said in a news release. "It is an illegal violation of our national contract."

According to Reuters, UPS said it plans to fulfill its contractual obligations with Teamsters.

UPS operates in at least 200 countries and territories and is located in Atlanta's Glenlake community.

Patch has reached out to UPS for comment and will update this story, if received.

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