Major Job Cuts Hit Logistics Giants: Amazon Slashes 16,000 Corporate Roles, UPS Plans 30,000 Operational Reductions in 2026

January 29, 2026

Two of the world's largest logistics and e-commerce players announced significant workforce reductions this week, with Amazon confirming 16,000 corporate job cuts and UPS outlining plans to eliminate up to 30,000 operational positions in 2026, highlighting ongoing restructuring amid shifting business priorities and cost pressures.

Amazon's Second Wave of Corporate Layoffs

Amazon revealed on January 28 that it is eliminating approximately 16,000 roles across its corporate workforce as part of a broader effort to reduce bureaucracy, increase ownership, and streamline decision-making. The cuts, announced in an internal memo from Senior Vice President of People Experience and Technology Beth Galetti, represent the second major round since October 2025, when the company slashed 14,000 positions.

The latest reductions affect various divisions, including Amazon Web Services (with impacts on services like Bedrock and Redshift), Prime subscription teams, and last-mile delivery operations. Affected employees have been given 90 days to seek internal roles, with those unable to transition receiving severance, outplacement support, health benefits continuation, and other assistance.

Amazon emphasized that the moves are not part of a recurring layoff cycle but rather targeted adjustments to maintain agility in a rapidly evolving market. The company continues heavy investment in artificial intelligence infrastructure, data centers, and core retail operations while trimming layers of management.

UPS Accelerates Amazon Volume Reduction, Targets 30,000 Job Cuts

United Parcel Service (UPS) announced on January 27 during its fourth-quarter earnings call that it expects to reduce up to 30,000 operational positions in 2026 through attrition and voluntary driver buyout programs. The company explicitly stated no layoffs are planned, focusing instead on natural turnover and incentives.

The reductions tie directly to UPS's ongoing strategy to scale back low-margin deliveries for Amazon, its former largest customer. CEO Carol Tomé noted the company is in the final phase of an accelerated glide-down plan, aiming to reduce Amazon volume by another million pieces per day in 2026 while reconfiguring the network for higher-profit business. UPS also plans to close 24 facilities in the first half of the year, with potential for more later.

The move follows 48,000 job cuts in 2025, including 34,000 operational roles, as UPS shifted away from Amazon's dilutive shipments toward more lucrative segments. The strategy is projected to generate $3 billion in savings related to the Amazon unwind.

Broader Implications for Workers and Industry

The announcements come amid a wave of cost-cutting across logistics and tech sectors, driven by post-pandemic normalization, automation investments, and competitive pressures. Amazon's corporate reductions affect a relatively small portion of its 1.5 million global workforce (mostly warehouse-based), but represent nearly 10% of its office roles. UPS's operational focus impacts drivers and facility staff hardest.

Both companies reported strong financial results recently, with Amazon citing booming e-commerce and cloud growth, while UPS beat earnings expectations despite volume challenges. Shares of both firms rose on the news, signaling investor approval of the efficiency drives.

As thousands face transition, the moves underscore the human cost of strategic pivots in an industry transformed by e-commerce dominance and technological change. Support services for affected workers have been activated, but the scale of reductions highlights ongoing volatility in logistics employment.