Delivery services across the country are facing significant job reductions as both UPS and the U.S. Postal Service implement measures to cut costs amid evolving market demands. With the increasing impacts of tariffs and technological advancements, the potential loss of thousands of positions is raising concerns for workers and consumers alike.
UPS has announced plans to eliminate approximately 20,000 jobs this year, which constitutes around 4% of its total global workforce. The company’s Chief Executive, Carol Tomé, indicated during a recent conference call that this reduction is part of a broader strategy to optimize operations and enhance automation across its distribution network. “We are executing the largest network reconfiguration in UPS history,” the company stated, highlighting the closure of 73 facilities by the end of June as part of its modernization efforts.
Alongside these layoffs, UPS has reached an agreement with Amazon, its largest customer, to slash business operations by over 50% by the latter half of 2026. This partnership reflects the growing need for operational efficiency amid shifting business dynamics. The Teamsters union, representing UPS workers, has vowed to contest any actions that compromise job security. Union president Sean M. O’Brien emphasized that the company must adhere to its commitment to create 30,000 jobs under their current contract.
In a parallel move, the U.S. Postal Service plans to cut 10,000 positions as it confronts mounting financial challenges, with losses nearing $100 billion and projected deficits totaling around $200 billion. Postmaster General Louis DeJoy outlined these changes in a letter to Congress, indicating a commitment to modernizing operations for better efficiency, reliability, and financial health. The USPS’s “Delivering for America” plan, which debuted in 2021 and was recently updated, aims to bolster service amid declining mail volumes.
Over the past few decades, the number of letters and postcards handled by the Postal Service has plummeted, dropping from 57 billion pieces in 1997 to just 12 billion in 2023. In response, the Postal Service is adjusting its collection and transportation methods to reflect current demand. From April 1, delivery schedules were modified to streamline operations, with significant changes planned for July 1. Mail pickups and deliveries will now occur just once daily, instead of twice.
Despite these operational shifts, UPS maintains that customer experiences will not suffer due to the reductions. However, the Postal Service has indicated that changes are on the horizon, with specific impacts on delivery times. First-class mail will still arrive within the typical one to five days, while priority mail express services will now range from one to three days, an adjustment from the previous one to two days, based on drop-off times.
The USPS also aims to expedite delivery for certain promotional materials and publications, though specific timelines for these services remain undisclosed. Customers can access details about expected delivery times through the USPS’s “Service Commitments” tool online, allowing for more precise estimates based on postal routes and timing.
As both delivery giants navigate these economic challenges, the impact on employees and consumers remains to be seen, highlighting the necessity for adaptability in an increasingly digital world.