UPS Caps Driver Buyouts at 7,500 in Teamsters Deal as Turnaround Grinds On

UPS has struck a deal with the Teamsters capping its driver severance buyouts at 7,500 drivers at up to $150,000 each, easing a dispute that had drawn a union lawsuit over the company's Driver Choice Program. The program was oversubscribed in its first quarter, generating about $150 million in transitional costs that management says will fade through the year.

The buyouts are part of a sweeping restructuring in which UPS is eliminating up to 30,000 operational jobs and closing facilities through 2026 as it reduces reliance on lower-margin Amazon volume. The company has reaffirmed full-year targets of roughly $89.7 billion in revenue and a 9.6% adjusted operating margin.

Management has framed the second half of 2026 as the inflection point for its more profitable U.S. small-package network — a thesis investors will test when the company next reports results later this month.