UPS to lay off 20,000 employees: This is how much the company’s delivery drivers make per year
Due to reduction of volume in Amazon due to uncertainty in the economy and lack of consumer confidence, the delivery company is forced to make cuts.
UPS announced on April 29, 2025 its plans to lay off 20,000 employees due to the drop in volume from Amazon, the company’s biggest customer.
The company’s Chief Financial Officer Brian Dykes explained the situation in an earnings call on Tuesday, “These actions will enable us to expand our U.S. Domestic operating margin and increase profitability,” he said.
UPS had reached an agreement in January 2025 with Amazon in which the delivery company will see a 50 percent drop in volume in the second half of 2026.
The company mentioned economic instability and the impact of the trade war between China and the Trump Administration, “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” said UPS CEO Carol Tomé.
UPS announces they will cut 20,000 jobs this year because of the economic conditions under Trump. pic.twitter.com/dRikpAeXMx
— No Lie with Brian Tyler Cohen (@NoLieWithBTC) April 29, 2025
How much money do UPS drivers make per year?
As part of the new five-year contract drivers across the board saw a pay increase implemented retroactively. The national master agreement gave all UPS drivers a $2.75 per hour pay raise retroactive to Aug. 1, 2023. Over the life of the contract total wage increases will be $7.50 per hour.
The average annual pay for experienced UPS drivers can reach up to $170,000 once benefits are included according to the company’s website.
The contract raised pay for existing part-time drivers to no less than $21 per hour, which was made effective immediately. This is also now the starting wage for new part-time hires, increasing to $23 per hour. The total wage increase for part-time drivers over the length of the contract will be 48 percent on average.
The average top rate for full-time drivers will rise to $49 an hour keeping UPS Teamsters the highest paid delivery drivers in the US.
“Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry,” said Teamsters General President Sean M. O’Brien in a press release in August 2023. “This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
Other conditions of the UPS Teamsters’ contract
In addition to the pay increases, the national master agreement did away with the two-tier pay system immediately reclassifying 22.4 Drivers to Regular Package Car Drivers and placing them into seniority. As well, drivers would no longer be forced to do overtime on their days off.
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