UPS Slashes 20K Jobs, Eyes Humanoid Robots

UPS is considering humanoid robots for future operations, even as it plans to cut 20,000 jobs and shut down 73 facilities across its U.S. network in 2025. The dual development reflects the company’s evolving strategy to increase automation and reduce reliance on lower-margin e-commerce volumes—especially from Amazon.

Discussions with Figure AI Signal Next-Gen Automation

UPS is in active talks with Figure AI, a robotics startup developing humanoid robots for warehouse and logistics tasks. While the companies have not confirmed a partnership, discussions began in 2023 and have continued into this year.

A Figure AI video posted in February showed one of its robots picking parcels beside a conveyor belt, hinting at possible roles in sorting or fulfillment. The company has emerged as a major player in the humanoid robotics space and is reportedly seeking to raise $1.5 billion at a $39.5 billion valuation, according to Bloomberg.

UPS did not confirm the partnership, stating only that it “regularly explores and deploys a wide range of technologies, including robotics.”

Currently, UPS uses robotic arms and AI-powered systems at its Velocity hubs and has partnered with Dexterity Inc. for more advanced warehouse robotics.

Largest Network Restructuring in Company History

At the same time, UPS is executing what CEO Carol Tomé called the company’s “largest network reconfiguration in our history,” driven by a planned 50% reduction in Amazon volume by mid-2026.

Key operational changes include:

• 20,000 job cuts in 2025

• 73 facility closures by June

• An expected $3.5 billion in cost savings for 2025

• 64% of package volume now handled through automated sortation, up 4.5% YoY

Amazon volumes fell 16% in Q1, with similar declines expected in Q2 and steeper drops of 30% in Q3 and Q4. Tomé cited profitability concerns, noting that certain outbound shipments from Amazon fulfillment centers were “not profitable for us, nor a healthy fit for our network.”

As UPS reduces its footprint, it is emphasizing consumer access via The UPS Store, Drop Boxes, and Access Points—90% of Americans live within five miles of one of these locations.

Sources: Supply Chain Dive | Transport Topics

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