--- title: "UPS Closing Package Facilities Across the U.S. | Metaintro" canonical: "https://www.metaintro.com/blog/ups-closing-package-facilities-job-losses-2026" language: "en" author: "drashtigarach" published: "2026-02-20T11:30:00.000Z" modified: "2026-10-02T19:16:59.525Z" --- [Back to Blog](/blog) [Layoffs](/blog/tag/layoffs)[News](/blog/tag/news)[Information](/blog/tag/information) # UPS Closing Package Facilities Across the U.S. — Thousands of Jobs at Risk UPS is shutting down 22 package facilities across 18 states in 2026, putting 30,000 jobs at risk. Here's where closures are happening and what it means for workers. [![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach) [February 20, 2026](/blog/archive/2026/02)12 min read ![UPS Closing Package Facilities Across the U.S. — Thousands of Jobs at Risk](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/ups-closing-package-facilities-job-losses-2026.png) [https://x.com/intent/tweet?text=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026](https://x.com/intent/tweet?text=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026&title=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026&title=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk)[mailto:?subject=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026](mailto:?subject=UPS%20Closing%20Package%20Facilities%20Across%20the%20U.S.%20%E2%80%94%20Thousands%20of%20Jobs%20at%20Risk&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fups-closing-package-facilities-job-losses-2026) [UPS](https://about.ups.com/) is closing 22 package sorting facilities across 18 states in 2026 — and tens of thousands of jobs are on the line. The shipping giant, which already eliminated 48,000 positions in 2025, announced plans to cut another 30,000 jobs this year as it unwinds a massive delivery partnership with [Amazon](https://www.aboutamazon.com/) and accelerates its shift toward automation. Major cities including Atlanta, Dallas, Miami, Las Vegas, and Baltimore are among the hardest hit, according to court documents first reported by [FreightWaves](https://www.freightwaves.com/news/ups-identifies-22-package-facilities-for-closure). For warehouse workers, package handlers, and drivers at these locations, the question is no longer whether cuts are coming — it is how soon. ## What Facilities Is UPS Closing? UPS has identified 22 package sorting facilities with bargaining unit employees for closure in 2026, spanning 18 states across the country. The disclosure came through a letter dated January 30 from Daniel Bordoni, UPS's president of global labor relations, to [Teamsters](https://teamster.org/) General President Sean O'Brien. The letter was included as an exhibit in an ongoing federal court case in Massachusetts. While UPS has not released a complete public list of every address, the confirmed cities facing closures include some of the company's most significant operational hubs. Buildings in Atlanta — where UPS is headquartered — along with Dallas, Miami, Las Vegas, and Baltimore are among those slated to shut down, according to [Supply Chain Dive](https://www.supplychaindive.com/news/ups-2026-closures-layoffs-building-locations/812344/). These are not small satellite offices. They are package sortation centers — the backbone of UPS's ground delivery network — where hundreds or even thousands of workers sort, scan, and route millions of packages daily. Additionally, UPS had previously identified 24 buildings for closure in the first half of 2026, with additional closures possible later in the year. The company has already notified applicable local unions about the expected impacts at each location. WARN Act notices filed in Maryland, California, Colorado, and Oklahoma indicate that more than 1,600 employees have already been or will be impacted by full and partial facility closures in those states alone, according to [Supply Chain Dive](https://www.supplychaindive.com/news/ups-warehouse-closures-layoffs-2026/809147/). This is not the first wave of closures. In 2025, UPS closed 93 buildings and increased automation in 57 other facilities as part of its multi-year "Network of the Future" overhaul. The 2026 closures represent the next phase of a plan that envisions shuttering up to 200 sortation centers over five years — the most aggressive network consolidation in the company's 118-year history. ## How Many Jobs Are at Stake? The scale of job losses is staggering. UPS Chief Financial Officer Brian Dykes announced on the company's January 27 earnings call that UPS plans to eliminate up to 30,000 jobs in 2026. These cuts come on top of the 48,000 positions the company already eliminated in 2025 — 34,000 operational roles and 14,000 management positions — as reported by [CNBC](https://www.cnbc.com/2026/01/27/ups-job-cuts-amazon-unwind-turnaround-plan.html). Combined, that is roughly 78,000 jobs lost in just two years. The 2026 reductions will primarily target operational roles. UPS plans to cut approximately 25 million operating hours from its network this year, according to CFO Dykes. The reductions are expected to come through a combination of attrition, voluntary separation packages, and a controversial driver buyout program that has drawn a lawsuit from the Teamsters union. To put these numbers in perspective, UPS employed roughly 500,000 people worldwide at the start of 2024. Losing 78,000 positions means the company is shedding approximately 15% of its entire global workforce in the span of two years. For the workers directly affected — many of whom earn between $37,000 and $52,000 annually as package handlers, according to [Glassdoor](https://www.glassdoor.com/Salary/UPS-Package-Handler-Salaries-E3012_D_KO4,19.htm) — these are not just statistics. They represent lost livelihoods in an industry that has long been considered a reliable path to middle-class stability. Full-time UPS drivers, who earn significantly more under the Teamsters contract — with top-rate drivers on track to reach $49 per hour ($101,920 annually) by 2027 and total compensation packages valued at up to $170,000 including benefits — are also being targeted. UPS offered a $150,000 voluntary separation package to full-time U.S. drivers willing to leave, though that program is now entangled in legal disputes with the union. ## Why Is UPS Making These Cuts? The driving force behind UPS's downsizing is a dramatic reduction in its relationship with [Amazon](https://www.aboutamazon.com/), its largest — and least profitable — customer. UPS reached an agreement to reduce Amazon delivery volumes by more than 50% by June 2026. That translates to roughly one million fewer Amazon parcels handled per day, according to [CNBC](https://www.cnbc.com/2026/01/27/ups-job-cuts-amazon-unwind-turnaround-plan.html). The math behind the decision is straightforward. CEO Carol Tome has been blunt about the economics: approximately 60% of UPS's Amazon business is loss-making. Despite Amazon being the company's biggest customer by volume, the low-margin deliveries were dragging down profitability. By shedding unprofitable Amazon volume, UPS aims to redirect capacity toward more lucrative clients — particularly small and mid-sized businesses and enterprise shippers who generate better per-package yields. Amazon, for its part, has publicly downplayed the split. "Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision," said Amazon spokesperson Kelly Nantel. "We'll continue to partner with them and many other carriers to serve our customers." The understated response reflects Amazon's own logistics evolution — the company has spent years building out its own delivery network, reducing its dependence on third-party carriers like UPS and [FedEx](https://www.fedex.com/). Beyond the Amazon unwind, UPS is aggressively pursuing automation through its "Network of the Future" initiative. The company invested heavily in automated sorting technology throughout 2025, increasing automation in 57 facilities. The goal is to reduce reliance on manual labor in the package sortation process, which has historically been one of the most labor-intensive parts of the delivery supply chain. CEO Tome described the transformation as "the most significant strategic change in direction in UPS's history." The financial payoff has been significant. UPS's consolidation and automation efforts saved the company $3.5 billion in 2025 alone. For 2026, UPS is targeting an additional $3 billion in savings tied specifically to the Amazon volume reduction, including cuts to operating hours, jobs, and facilities. UPS is also handing off its low-cost Ground Saver packages to the [U.S. Postal Service](https://www.usps.com/) for final-mile delivery, further reducing its need for sorting capacity. ## What Does This Mean for Logistics Workers? The ripple effects of UPS's downsizing extend far beyond the 30,000 workers directly losing their jobs. The closures send a clear signal about where the logistics industry is heading — and it is not a direction that favors low-skilled manual labor. The [Teamsters](https://teamster.org/) union has pushed back aggressively. The union filed a lawsuit seeking a temporary restraining order against UPS's $150,000 driver buyout program, arguing it violates at least six provisions of the National Master Agreement. Among the charges: UPS is accused of directly dealing new contracts with individual workers, eliminating union positions when it contractually agreed to create more, and eroding the rights of union shop stewards. Teamsters General President Sean O'Brien has been vocal in his opposition. "We've given too much to grow and sustain this company, and we will not be sold short," O'Brien said in a statement reported by [FreightWaves](https://www.freightwaves.com/news/ups-challenges-teamster-suit-over-150000-driver-buyouts). "UPS must dismantle its illegal buyout program and resolve its contract violations in the courts, or the Teamsters will see this greedy corporation in the streets." For workers outside the union, the situation may be even more precarious. Non-union warehouse workers and part-time package handlers typically lack the contractual protections and severance guarantees that Teamsters members negotiate. These workers — many earning around $18 per hour according to [ZipRecruiter](https://www.ziprecruiter.com/Salaries/Ups-Package-Handler-Salary) — often rely on UPS for steady hours and access to benefits that are harder to find at competing logistics companies. The broader logistics industry is also watching closely. UPS's pivot away from high-volume, low-margin delivery work toward specialized services like healthcare logistics and business-to-business shipping signals a structural shift. Other major carriers, including [FedEx](https://www.fedex.com/), are pursuing similar strategies — consolidating networks, investing in automation, and reducing headcount. For the hundreds of thousands of workers employed across the package delivery supply chain, the message is becoming harder to ignore: the jobs of today may not exist tomorrow. ## How to Prepare If Your Job Is at Risk If you work at a UPS facility that may be on the closure list, or in any logistics role that feels increasingly uncertain, there are concrete steps you can take right now to protect your career. First, understand your rights. If your facility is closing, your employer is required to provide advance notice under the federal [WARN Act](https://www.dol.gov/agencies/eta/layoffs/warn) (Worker Adjustment and Retraining Notification Act) if 100 or more workers are being laid off. This typically means 60 days of advance notice, giving you time to plan. Check with your local union representative or HR department to confirm whether a WARN notice has been filed for your location. Second, explore internal transfer options. UPS is not shutting down entirely — it is consolidating. Some workers at closing facilities may have opportunities to transfer to remaining locations, particularly those being upgraded with new automation technology. Workers with experience operating automated sorting equipment, managing logistics software, or supervising warehouse operations will be in higher demand at the facilities that survive. Third, consider upskilling now. The logistics jobs that are growing in 2026 require different skills than traditional package handling. Roles in warehouse automation, robotics maintenance, supply chain analytics, and fleet management technology are expanding even as manual sorting positions disappear. Certifications in forklift operation, hazardous materials handling, or supply chain management from organizations like [APICS](https://www.ascm.org/) can make you significantly more competitive. Fourth, evaluate the buyout carefully. If you are a full-time UPS driver being offered the $150,000 voluntary separation package, do not make a snap decision. Consider your age, years to retirement, current savings, local job market conditions, and whether you have transferable skills. Consult with a financial advisor before accepting — and keep in mind that the Teamsters' legal challenge could change the terms or availability of the buyout program. Fifth, start your job search early. Do not wait until your last day to begin looking. The logistics sector still employs millions of workers across the United States, and companies like Amazon, [FedEx](https://www.fedex.com/), [DHL](https://www.dhl.com/), [XPO Logistics](https://www.xpo.com/), and regional carriers continue to hire. Healthcare logistics, cold chain delivery, and last-mile services for e-commerce are all growing segments. The [Bureau of Labor Statistics](https://www.bls.gov/) projects that transportation and material moving occupations will add roughly 300,000 jobs nationwide through 2032, even as some traditional roles shrink. Finally, tap into your network. If you have been at UPS for years, you have built relationships with supervisors, colleagues, and customers who may know about openings elsewhere. Reach out to former coworkers who have already transitioned, connect with local workforce development agencies, and consider signing up for job alerts through platforms that specialize in logistics and supply chain roles. --- ## People Also Asked **Q:** How many UPS facilities are closing in 2026? **A:** UPS has identified 22 package sorting facilities with bargaining unit employees for closure across 18 states in 2026, according to court documents filed in a federal case in Massachusetts. The company had also identified 24 buildings for closure in the first half of the year, with additional closures possible later. Cities confirmed to be affected include Atlanta, Dallas, Miami, Las Vegas, and Baltimore. In 2025, UPS closed 93 facilities, and the long-term plan envisions shuttering up to 200 sortation centers over five years as part of the "Network of the Future" initiative. **Q:** Why is UPS cutting so many jobs? **A:** UPS is cutting 30,000 jobs in 2026 primarily because it is reducing Amazon delivery volumes by more than 50% — roughly one million fewer parcels per day. About 60% of UPS's Amazon business was unprofitable, and the company is shifting focus to higher-margin clients like small businesses and healthcare logistics. The cuts are also driven by aggressive automation investments through the company's "Network of the Future" program, which saved $3.5 billion in 2025. UPS is targeting an additional $3 billion in savings in 2026 through reduced operating hours, job cuts, and facility closures. **Q:** What is the UPS driver buyout, and can drivers still take it? **A:** UPS offered a $150,000 voluntary separation package to full-time U.S. drivers willing to leave the company. However, the [Teamsters](https://teamster.org/) union filed a lawsuit and sought a temporary restraining order to block the buyout program, alleging it violates at least six provisions of the National Master Agreement — including direct dealing with workers outside the union, eliminating jobs UPS contractually agreed to maintain, and undermining shop steward rights. As of February 2026, the buyout program's future depends on the outcome of this federal court case. Drivers considering the offer should consult their local union representative and a financial advisor before making any decisions. --- Looking for your next opportunity? 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