UPS’ warehouse closures are expected to ramp up this year, adding on to its “Network of the Future” strategy that is leading its current transformation. As part of the business overhaul that has been in the works since 2024, the company has made dramatic changes to its workforce, slashing hundreds of thousands of jobs in an attempt to shrink the business and refocus its operations on more lucrative opportunities. The UPS job cuts in 2025 may have been staggering, but the company is expected to close or dial back operations at four facilities over the next two months, affecting more workers in 2026.
UPS’ warehouse closures are continuing in 2026, moving the company closer to its goal of automated operations that drive efficiency. (Image: Freepik)
UPS Warehouse Closures Signal More Losses for Employees in 2026
Emerging reports indicate that four key facilities spread across North Carolina, Michigan, and Alabama are to see changes to their operations by the end of February. A Kinston, North Carolina, warehouse is expected to close on January 13, followed by the closure of another warehouse in Cadillac, Michigan. The number of affected workers at these locations has not been disclosed.
Additionally, at Wyoming and Montgomery, day sort operations will be coming to an end on January 20 and February 23, respectively. According to the UPS Worker Adjustment and Retraining Notification (WARN) Act notices, at least 195 workers will be affected by the shift. In the coming months, these numbers could grow with further efforts towards dialing back operations.
The UPS layoffs in 2025 were one of the most noteworthy stories to break in the realm of employment, when the company announced plans to dial down its business with top customer Amazon and reduce its headcount by 20,000 workers in April. By October, the UPS network restructuring reportedly resulted in the company laying off 48,000 workers overall. Reports suggest that UPS’ workforce reduction resulted in the axing of around 34,000 operational jobs and 14,000 management positions
How Automation and “Right-Sizing” Are Redefining the Workforce
UPS network restructuring plans and sort facility layoffs are one of the most significant structural transformations at the company in its 119-year history. The logistics and work of closing almost 200 facilities through 2028 is no easy task, particularly when it comes with a reduction in business capacity as well. Still, for the UPS warehouse closures to make sense to the business, an elaborate strategy must have stood at the heart of the plan.
Many of the company’s recent plans and announcements paint the full picture. The “Network of the Future” strategy that UPS is currently pursuing through the layoffs in 2026 suggests the business is consolidating smaller operations into massive, highly automated regional hubs. The evidence of this is clear in recent reports that showcase the organization’s $120 million investment in a robot army, tying automation more fully into its overall gameplan.
The company’s plans to reduce its physical footprint and its labor-intensive processes may mean better results for the business, but it does come at the cost of a section of the workforce. Automation is no longer a concern for the future: it is actively dictating headcounts in 2026 and beyond.
The HR Challenge: Melding Business Needs with Employee Well-Being
UPS’ warehouse closures and layoffs bring it closer to the future that the company envisions for itself, but this does come at the risk of employee interests. For thousands of package handlers, drivers, and administrative staff, the UPS job cuts add to their uncertainty. With displacement of work being the primary concern, many remain apprehensive about businesses turning to automation. UPS has the opportunity to make the most out of a complex situation by helping displaced workers find new roles.
This can be done either within the company’s own automated operations or through outplacement services. Skill gap analysis can help identify workers who can be trained to operate the newer technology within the UPS business, and those who are let go can alternatively be provided robust severance packages to tide them over until their next role. This ensures that the separation between employers and employees is a peaceful one.
As workers are let go, those who are left behind are left to deal with their workplace survivor’s guilt while also combating the fear of standing at the front of the line for the next round of job cuts. The possibility of layoffs also brings businesses like UPS closer to bumping heads with unions and collective unrest among workers, making this a conversation that needs to be negotiated and navigated with care. Taking these aspects into consideration is key for businesses that are planning to duplicate UPS’ strategy within their own ranks.
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42 year UPSer. Started in 1984 lots of changes in my career.Sad to see the company lay anyone off! Our K.O.R.E. beliefs ( Keeping Our Reputation for Excellences) has been forgotten. Our appearance ( beards unwashed package cars being woke has destroyed our image. The competition has taken the dignity out of delivering packages. They have made it a throw away job. The Teamsters beat up on UPS every five year it can’t sustain itself! If they would organize the competition maybe UPS could be on a even playing feild and continue to provide great benefits I’ve enjoyed all these years. FedEx bought RPS in 1998! Teamsters its been 28 years what’s taking so long to organize them? I’ll be retired soon. I worry about my younger co-workers after July31 2028!