UPS Offers Buyouts To Delivery Drivers As It Cuts 20,000 Jobs

United Parcel Service (UPS) is offering buyout packages to its U.S.-based delivery drivers.

The move comes as the company plans to cut 20,000 positions and close 73 facilities as part of the largest network reconfiguration in its 117-year history.

The delivery and logistics giant is grappling with stagnant parcel volumes and high labor costs, which are weighing on its stock.

UPS employs about 330,000 full- and part-time delivery drivers, clerks, and package handlers represented by the International Brotherhood of Teamsters union.

Full-time drivers are eligible for the new buyout, the company said in a news release.

Atlanta, Georgia-based UPS had signaled after its latest financial results in the spring that it was planning a network overhaul due to a slide in deliveries for its key customer Amazon (AMZN).

UPS is also dealing with U.S. President Donald Trump’s tariffs and their impact on shipments and demand for its logistics services.

UPS said that the new buyout packages will be in addition to any retirement benefits such as pension and healthcare that unionized employees receive.

The company is receiving pushback on its planned buyouts from the Teamsters union.

In a written statement, the Teamsters called the UPS buyouts an “illegal violation” of their national contract, under which UPS had pledged to create 22,500 new jobs.

“Our members cannot be bought off and we will not allow them to be sold out,” said the union.

UPS stock has declined 16% this year to trade at $104.13 U.S. per share.