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UPS to offers voluntary buyout packages to its US drivers
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UPS to offers voluntary buyout packages to its US drivers
Jul 3, 2025 9:17 AM

July 3 (Reuters) - Parcel giant UPS said on Thursday it

will offer voluntary buyouts to its full-time U.S. drivers as

part of the largest network reconfiguration in its history - a

sweeping overhaul that includes cutting 20,000 jobs and closing

73 facilities.

The Atlanta-based company had in April announced a network

reconfiguration plan following a reduction in deliveries for its

key customer, Amazon.com, and amid U.S. President Donald Trump's

tariffs.

The buyout package is in addition to any retirement benefits

such as pension and healthcare, the company said in a statement.

The Teamsters union, which represents about 330,000 workers

at UPS, was first to announce the buyout plans, calling them an

"illegal violation" of the national contract, under which UPS

had committed to create 22,500 more jobs.

"Our members cannot be bought off and we will not allow them

to be sold out," said Sean O'Brien, general president of the

union.

"UPS needs to live up to the existing contract. They must

honor their commitments."

UPS said it intends to adhere to the terms of its contract

with the union.

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