UPS is reducing its seasonal hiring for the second consecutive year. The company plans to hire approximately 9% fewer seasonal workers compared to the previous year. This adjustment follows a broader trend of workforce optimization, as the company previously cut 15,000 seasonal positions in 2025 and announced plans to eliminate up to 30,000 operational jobs in 2026.
These staffing changes align with the company's strategy to reduce shipments for Amazon and prioritize more profitable delivery volumes. In the second quarter, the average daily package volume in the U.S. fell by 3.3%, while revenue per package increased by 9.3%. CEO Carol Tome stated that the firm is focused on improving delivery economics through increased automation and real-time network visibility.
The broader retail sector is also showing caution regarding holiday staffing. Challenger, Gray and Christmas projects that seasonal hiring by retailers will drop to 450,000 in the fourth quarter of 2026, compared to 461,500 in the same period of 2025 and 543,100 in 2024. Retailers are increasingly relying on existing staff and automation technologies rather than large-scale new seasonal recruitment.
