UPS · 10-Q · 2026Q3 · Full report

Headcount / Restructuring

UNITED PARCEL SERVICE INC · 2026-11-04 · Importance 58 · Surprise 42 · No source text

UPS closed 47 leased or owned buildings in the first nine months of 2026, including 46 permanently closed facilities, under Network Reconfiguration and Efficiency Reimagined. The company recorded approximately $1.2 billion of Driver Choice Program separation costs and $1.4 billion of total transformation-strategy costs in the 2026 year-to-date period, with $1.9 billion incurred cumulatively for the initiatives. The programs generated approximately $1.8 billion of benefits year to date; UPS expected nearly $3 billion of full-year 2026 benefits and said Efficiency Reimagined was expected to continue through the fourth quarter of 2027.

Key facts

• UPS expected full-year 2026 non-GAAP adjusted operating expense to exclude $1.4 billion to $1.6 billion of transformation costs, primarily employee separation and consulting costs, including $1.2 billion related to the Driver Choice Program. source
• In the first nine months of 2026, UPS closed 47 leased or owned buildings, 46 permanently, and recorded approximately $1.2 billion in separation costs related to the Driver Choice Program. source
• UPS employee benefits were up $836 million year to date primarily from Driver Choice Program separation costs. source
• UPS direct labor costs decreased $38 million in the third quarter and $346 million year to date; lower headcount, volume and hours reduced costs by $182 million and $872 million, respectively. source

Impact estimates