UPS Q4 Earnings Call And The Amazon Exit Plan

UPS, doing what it does best, spent the day moving boxes — and moving its cost base. On January 27, 2026, the company said it will eliminate up to 30,000 jobs and shut 24 facilities in 2026 as it continues reducing low-margin Amazon volume in a push toward more profitable business. All of this follows a previous reduction of 48,000 jobs in 2025. Investors didn’t exactly hate the idea - UPS shares rose about 4% in midday trading.

Management framed the Amazon retreat as a glide path, not a cliff. On the Q4 earnings conference call, CEO Carol Tomé said, "We’re in the final six months of our Amazon accelerated glide down plan, and for the full year 2026, we intend to glide down another million pieces per day while continuing to reconfigure our network." CFO Brian Dykes said the 2026 reductions are expected to come via attrition and driver buyouts, with layoffs not planned, and noted that many cuts can come from not filling jobs as part-time workers leave.

On the numbers, UPS delivered a holiday-quarter beat while it quietly charged extra for the privilege. It reported Q4 revenue of $24.5 billion (vs. estimates around $24.0 billion) and adjusted EPS of $2.38 (vs. estimates around $2.20). Even with lower overall volume, revenue per piece rose 8.3% in U.S. domestic and 7.1% internationally. The additional charges were not focused on for very long during the call, but it's fair to assume they were likely also a strategy to offset dwindling Amazon revenue. Last year, Amazon revealed plans to build it's own logistics network - eventually to handle the majority of its shipping internally.

For 2026, UPS projected revenue of $89.7 billion (vs. $88.7 billion in 2025), and said it expects revenue to fall in the first half as the Amazon glide-down finishes, then rise sequentially in the second half once those reductions are complete. It also accelerated retirement of its remaining MD-11 fleet by end-2025 and took a $137 million non-cash, after-tax charge tied to writing off those aircraft. So Q4 was baked and topped with fewer “dilutive” packages, more yield discipline, and a network built for higher-margin freight — delivered with UPS’s signature brown-box practicality.

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