UPS Announces Job Cuts Amid Amazon Partnership Wind Down
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy UPS?
Source: Benzinga
United Parcel Service Inc (UPS) shares rose by 3.00% as the stock reached a 20-day high, reflecting investor optimism despite ongoing challenges.
The company announced plans to cut 30,000 jobs as it winds down its partnership with Amazon, following a previous reduction of 48,000 jobs. This move is part of UPS's strategy to revitalize its business, aiming for total savings of $3 billion related to the partnership dissolution. Despite these job cuts, UPS reported fourth-quarter earnings that exceeded Wall Street estimates, indicating market confidence in its turnaround efforts.
The implications of these job cuts and the strategic shift away from Amazon deliveries suggest a focus on enhancing profitability through cost-saving measures and operational efficiency, which may ultimately benefit UPS in the long run.
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Analyst Views on UPS
Wall Street analysts forecast UPS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for UPS is 107.06 USD with a low forecast of 80.00 USD and a high forecast of 126.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
9 Buy
9 Hold
1 Sell
Moderate Buy
Current: 117.340
Low
80.00
Averages
107.06
High
126.00
Current: 117.340
Low
80.00
Averages
107.06
High
126.00
About UPS
United Parcel Service, Inc. provides a range of integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services. Its air portfolio offers time-definite, same-day, next-day, two-day and three-day delivery alternatives as well as air cargo services. Its ground network enables customers to ship using its day-definite ground service. UPS SurePost provides residential ground service for customers with non-urgent, lightweight residential shipments. Its International Package segment consists of small package operations in Europe, Indian sub-continent, Middle East and Africa, Canada and Latin America and Asia. It offers a selection of guaranteed day- and time-definite international shipping services. Its supply chain solutions consist of forwarding, logistics, customized third-party logistics and specialized cold chain transportation solutions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- No Disagreement in Resignation: UPS's SEC filing clarifies that Warsh's resignation is not due to any disagreements regarding the company's operations, policies, or practices, reflecting a positive relationship with UPS.
- Market Reaction Monitoring: Warsh's resignation could impact shareholder confidence in UPS, although there are currently no indications that this move will directly affect the company's operations.
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See More
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- Capital Flow Changes: Goldman Sachs equity strategist Ben Snider indicates that capital is rotating towards sectors perceived as insulated from AI disruption, marking a clear departure from last year's market strategies and reflecting diminished investor confidence in AI themes.
- Cyclical Industry Rally: Despite software stocks experiencing one of their worst weeks since the 2022 rate-hike panic, cyclical and consumer-linked industries have continued their recent rallies, indicating a growing preference for traditional sectors among investors.
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