United Parcel Service, Inc. (NYSE:UPS) has seen its price target increased by Susquehanna International Group, now set at $115, up from $105. Analyst Bascome Majors announced this adjustment on January 20, 2024, while maintaining a Neutral rating on the stock. The firm noted that parcel demand appears stable in the near term, despite investor concerns regarding Amazon’s anticipated reduction in delivery volumes, referred to as a “glide-down,” expected in the first half of 2026.
In a separate report dated January 27, 2024, Reuters revealed that UPS plans to reduce its workforce by as many as 30,000 jobs and close 24 facilities by 2026. These changes are part of UPS’s strategic shift away from lower-margin deliveries associated with Amazon, as the company aims to refocus on more profitable business segments.
UPS has been transparent about its strategy to cut back on unprofitable deliveries for Amazon. In January 2023, the company announced its intention to expedite efforts to diminish the volume of low-profit deliveries, which it described as detrimental to its margins. Furthermore, both UPS and its competitor, FedEx, have been facing challenges due to sluggish demand across the broader delivery market.
Last year, UPS made significant workforce adjustments, cutting 48,000 jobs, offering buyouts to drivers, and closing operations at 93 locations as Amazon’s delivery volumes continued to decline. The planned job reductions for 2026 are expected to occur through attrition and voluntary buyouts for full-time drivers. According to Brian Dykes, Chief Financial Officer of UPS, the company does not plan to implement layoffs.
In its 2024 annual report, UPS reported a total workforce of approximately 490,000 employees, with about 78,000 in management positions. Updated figures for 2025 are not yet available. Many of the job cuts will result from unfilled positions as part-time employees exit the business, as the company’s workforce is unionized.
UPS operates integrated logistics services in over 200 countries and territories worldwide, highlighting its substantial global footprint. While there is recognition of UPS’s potential as an investment, there are suggestions that certain artificial intelligence (AI) stocks may offer greater return prospects and lower risk.
As UPS navigates these changes, investors will be watching closely to assess how the company adapts to the evolving logistics landscape and the ongoing pressures of the delivery market.
