CLAIM #60522 · United Parcel Service Inc (UPS) · 2025Q4 earnings call · Jan 27, 2026 · due Jun 30, 2026
“we have identified 24 buildings for closure in the first half of the year, and we are evaluating additional buildings to be closed later in the year.”
Brian Dykes · CFO
In context
“ing Groundsaver, which we expect to moderate in 2026. This brings us to 2026 and the last two quarters of our six-quarter glide down of Amazon volume. In total, for the full year, we intend to glide down another million pieces per day of Amazon volume. Along with this reduction in volume, we will continue to reconfigure our U.S. network and take out variable, semi-variable, and fixed costs. Looking at the variable costs associated with the Amazon volume decline, in 2026, we plan to reduce total operational hours by approximately 25 million hours. In terms of semi-variable costs, we expect to reduce operational positions by up to 30,000. This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers. In the fixed cost bucket, we have identified 24 buildings for closure in the first half of the year, and we are evaluating additional buildings to be closed later in the year. Plus, we plan to further deploy automation across the network. Pulling it all together, we are targeting $3 billion in savings related to the Amazon glide down. Moving to our 2026 financial outlook, for the full year 2026, on a consolidated basis, we expect revenue to be approximately $89.7 billion. Operating margin is expected to be approximately 9.6%, and diluted earnings per share are expected to be about flat to 2025. As a reminder, 2025 EPS included a $0.30 benefit from a sale-leaseback transaction. Lastly, our guidance for 2026 does not reflect any significant changes to the current tariff landscape. Now let me add color on the segment. Looking at U.S. Domestic, we are going through significant structural changes, and 2026 marks the inflection point of our strategy. Full year 2026 r”
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SEC filings for UPS ↗ · Claim quote is verbatim from the 2025Q4 earnings call.