Is the UPS "Buyouts" Worth It?

Описание: Teamsters bureaucrats feign outrage as UPS announces buyout plans for full-time drivers.

United Parcel Service has announced it will offer buyouts to full-time drivers for the first time in its history. The so-called “Driver Voluntary Severance Plan” is the latest part of the company’s jobs massacre, including plans to eliminate 20,000 jobs this year.

The 20,000 cuts, originally announced in April, were in addition to the 12,000 middle and lower management jobs eliminated last year. Moreover, tens of thousands of warehouse jobs are in the process of being eliminated through the company’s so-called “Network of the Future.” Using automation technology, with the potential to eliminate 80 percent of “inside” jobs, the company has already closed major facilities around the country, with plans for up to 200 facilities to be shuttered and 400 renovated into partially or fully automated warehouses.

The immediate justification for the driver buyout plan is the severe reduction of UPS’s deliveries for Amazon. UPS plans to reduce its Amazon shipments in half by the middle of 2026, citing the high cost of delivery and the lack of profitability. Amazon parcels makes up to a quarter of UPS volume, but only 11.8 percent of revenue according to management.