Following negotiations with the Teamsters union, United Parcel Service (UPS) agreed to cap its Driver Choice Program — a voluntary buyout — at 7,500 drivers. The first 7,500 applicants among the company's roughly 105,000 drivers will be eligible for the program with a $150,000 severance package.
The agreement is critical for UPS to execute its 2026 plan to reduce the workforce by 30,000 positions in a disciplined manner. A significant share of the program is expected to be carried out in the first half of 2026.
Industry analysts assess that the decision, combined with parcel volume normalization and automation investments, will support UPS in tightening its cost structure. The Teamsters side stressed that the cap is an important gain for protecting frontline employment.
Key Takeaways:
1. The Driver Choice Program has been capped at 7,500 drivers.
2. The severance package is $150,000 per driver.
3. The total driver workforce is roughly 105,000.
4. UPS targets a 30,000-position reduction in 2026.
5. Most of the program will be executed in the first half of 2026.
