UPS offers buyouts to full-time drivers in cost-cutting move as Teamsters slam proposal

LOUISVILLE, Ky. (WDRB) -- UPS is offering buyouts to its full-time drivers for the first time in its 117-year history.

UPS released a statement Thursday that said it's navigating "an unprecedented business landscape."

"We are looking to offer our full-time U.S. drivers the opportunity to participate in a voluntary program that would provide an opportunity to receive a generous financial package if they choose to leave UPS," the company said. "The financial package available through this program is in addition to any earned retirement benefits, including pension and healthcare. Each driver would have the ability to decide if this voluntary program is beneficial to their family and the plans they have for their future."

The Teamsters union, which represents about 340,000 UPS employees, released a statement Thursday strongly criticizing UPS for launching a multibillion dollar Driver Voluntary Severance Plan (DVSP). The Teamsters said the DVSP would violate the union's national contract to create jobs and provide "quality health insurance" to retirees.

"Our members cannot be bought off and we will not allow them to be sold out," Teamsters General President Sean M. O'Brien said in a statement. "The Teamsters are prepared to fight UPS on every front with every available resource to shut down this illegal buyout program."

"UPS needs to live up to the existing contract. They must honor their commitments, just as Teamsters do every day, reliably delivering packages to hundreds of millions of Americans. Profits are not more important than people, not at UPS or any other employer."

In January, UPS announced it reached a deal with Amazon, its biggest customer, to lower its volume by more than 50% by the second half of 2026.

The package delivery company said in April that it anticipates making 20,000 job cuts this year and that it would likely close 73 leased and owned buildings by the end of June. UPS said it was reviewing its network and could identify more buildings to be shuttered, as it reduces Amazon shipments.

UPS drivers are among the highest paid drivers in the country. According to Fox News, the company is seeking cost savings because of stagnant parcel volumes, rising labor costs and a long slump in the company's stock price.

The company employs about 490,000 total workers, according to FactSet.

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