UPS Cuts More Facilities as It Shifts Focus to Profitability

A report from FreightWaves, UPS is continuing its major restructuring in 2026, closing 27 more facilities after already shutting 23 this year. The company aims to cut $3 billion in costs and reduce tens of thousands of jobs as it moves away from low-margin, high-volume shipping.

A key part of the shift is reducing Amazon deliveries, which has already significantly lowered daily package volumes but improved UPS’s focus on more profitable customers.

Instead, UPS is prioritizing small and medium businesses, healthcare logistics, and business-to-business shipping—areas that generate higher margins.

To streamline operations, UPS is also handing nearly 1 million packages a day to the USPS for last-mile delivery.

Despite short-term declines in revenue and volume, UPS is betting that a leaner, higher-value network will drive stronger profits by late 2026.