UPS 2026 Facility Closures Among 22 Sites Affected Amid Teamsters Dispute

截屏2026 02 19 下午4.00.19UPS will close 22 facilities across 18 U.S. states in 2026, impacting locations with International Brotherhood of Teamsters union members, according to court documents filed in federal court.

The closures are part of UPS’ broader U.S. network downsizing strategy, driven by declining package volume from Amazon and structural changes to its last-mile delivery model.

ups closuresWhich Cities Are Affected?

Facilities in major markets including:

  • Atlanta, GA
  • Dallas, TX
  • Las Vegas, NV
  • Baltimore, MD

are among the buildings with bargaining unit employees slated for closure.

UPS President of Global Labor Relations Daniel Bordoni confirmed the plan in a January 30 letter to Teamsters General President Sean O’Brien. While the total number of impacted workers was not disclosed, local unions have been notified. UPS stated that no additional closures are currently planned.

Why Is UPS Closing Facilities in 2026?

UPS closure 1UPS’ restructuring stems from two major shifts:

1. Reduced Amazon Package Volume

Amazon, historically a major UPS customer, has scaled back its reliance on the carrier, prompting UPS to shrink its U.S. network footprint.

2. USPS Final-Mile Partnership Renewal

UPS is transferring more Ground Saver packages to the U.S. Postal Service (USPS) for final-mile delivery under a renewed agreement.

According to court filings, these changes are expected to impact “substantially all domestic UPS centers and routes in some manner.”

ups closure 2

30,000 Job Cuts Planned in 2026

UPS previously announced plans to:

  • Cut up to 30,000 operational positions
  • Close 24 buildings in the first half of 2026
  • Launch a new voluntary driver buyout program

The restructuring effort is part of UPS’ “network rightsizing” strategy aimed at improving efficiency and cost control.

Teamsters Lawsuit Challenges Driver Buyout Program

The proposed Driver Choice Program (DCP) would offer eligible drivers a $150,000 voluntary severance package, with applications initially scheduled from February 13 to March 12.

However, the Teamsters union filed a lawsuit seeking a temporary restraining order, arguing that the buyout plan violates its labor contract with UPS. The union is requesting an injunction to block the program.

UPS has countered in court filings, asserting that the court lacks jurisdiction to issue an injunction in this matter.

What Happens Next?

Approximately:

  • 80% of UPS’ 370,000 U.S. employees are represented by the Teamsters
  • About 105,000 drivers would be eligible for the buyout program

If the court delays or blocks the Driver Choice Program, UPS may turn to:

  • Natural attrition
  • Involuntary layoffs

UPS executives warned that prolonged legal proceedings could make the voluntary buyout program “no longer practical” due to timing and staffing reductions achieved through other methods.