Dive Brief:
- UPS is offering voluntary buyouts to select U.S. operations managers as part of efforts to advance its network streamlining initiative, the delivery giant said in an employee communication viewed by Supply Chain Dive.
- Eligible employees within the company's small package operations can apply for the offer between Aug. 26 and Sept. 9. Separation dates for those who apply will be between Sept. 30 and July 31, 2026.
- The buyout package includes "a combination of cash based on tenure with the company, access to healthcare and outplacement services," a UPS spokesperson said in an email. If UPS reaches its maximum number of applications, employees with the longest service at the company will be approved first, per the communication.
Dive Insight:
UPS is looking to trim its employee ranks as it shrinks its U.S. network to match planned reductions in its volume from Amazon, an undertaking that has involved shuttering dozens of buildings this year.
The streamlining effort is now expanding to voluntary buyouts for operations managers. The move comes after company executives said on a July 29 earnings call that employee attrition tied to 74 building closures didn't meet the company's expectations.
"From a staffing perspective, our attrition rate was lower than we anticipated, which resulted in higher expense than we planned," CEO Carol Tomé said.
UPS also has a voluntary buyout program underway for full-time U.S. drivers, featuring $1,800 per year of service and a minimum payout of $10,000. Executives said on the July 29 call that interest had been in line with the company's expectations so far, with many longtime drivers entertaining the offer.
The carrier moved the driver buyout application deadline from July 31 to Aug. 14 to give employees more time to weigh the offer, a UPS spokesperson said in an email earlier this month. Driver separations could begin as early as Aug. 31.
UPS isn't the only logistics giant to offer employee buyouts this year. Nearly 10,500 U.S. Postal Service employees accepted a voluntary early retirement offer, with separations taking effect April 30, as the financially ailing agency seeks to cut costs.
