United Parcel Service, Inc.

UPS executives describe agentic AI in customs brokerage, generative AI deal scoring in sales, an employee upskilling program for AI and data, and robot-powered sortation centers; CEO Carol Tome says humans will be needed to oversee the robots.

“someone's going to have to oversee the robots.”

The Teamsters say UPS withdrew its Driver Choice Program buyout in the 13-state Central Region after about 37 local unions filed grievances. UPS's own position is not in this release.

“By pulling out of more than a dozen states, UPS has conceded that its buyout programs are illegal.”

FY2025 Form 10-K states UPS is increasing its use of AI to optimize operations, notes facility and workforce consolidations, and reports about 460,000 employees with nearly 80 percent of U.S. employees unionized. No human-first or no-replacement commitment appears.

“we are increasing our utilization of artificial intelligence ("AI") to optimize our operations”

The Teamsters filed for an injunction to stop UPS's second driver buyout program, alleging National Master Agreement violations including eliminating union jobs where the contract requires creating positions.

“elimination of union jobs when UPS contractually agreed to establish more positions”

Q4 2025 earnings release (8-K exhibit) reports a 2025 operational workforce reduction of about 48,000 positions and 93 building closures, and describes Network of the Future as enhancing efficiency through automation.

“We reduced our operational workforce by approximately 48,000 positions, including 15,000 fewer seasonal positions”

Q3 2025 earnings release: about 34,000 operational positions cut and 93 buildings closed in nine months under Network Reconfiguration, which is explicitly aimed at efficiency through automation; about 14,000 mostly management positions cut under Efficiency Reimagined.

“Our Network of the Future initiative is intended to enhance the efficiency of our network through automation”

UPS offered its first-ever voluntary buyouts to full-time U.S. drivers during a network overhaul with about 20,000 planned U.S. position cuts; the Teamsters called the program unbargained.

“The Teamsters are prepared to fight UPS on every front with every available resource”

After UPS announced 20,000 expected job cuts for 2025, Teamsters General President Sean O'Brien said the national master agreement obliges UPS to create 30,000 Teamster jobs.

“UPS will be in for a hell of a fight.”

Analysis of UPS headcount falling from about 543,000 (end 2020) to about 500,000 (end 2023); UPS used AI and machine learning to move volume from labor-intensive sorting sites to automated hubs.

“to shift volume from more labor-intensive package sorting facilities to automated hubs”

UPS announced it would cut 12,000 management jobs; CEO Carol Tome credited AI and machine learning with making the cuts possible and said the jobs would not return.

“it's a change in the way we work.”

UPS press release confirming ratification of the five-year National Master Agreement covering more than 300,000 U.S. employees. The release does not mention technology, automation or AI.

“voted to overwhelmingly ratify a new five-year National Master Agreement that covers more than 300,000 full- and part-time UPS employees”

Teamsters/UPS National Master Agreement 2023-2028, Article 6 Section 4: drones, driverless vehicles, platooning and shifting are excluded from ordinary technological change for the contract term; UPS must give six months' notice and bargain the effects. New work created by technology stays with bargaining-unit employees.

“such changes shall not include the use of drones or driverless vehicles to transport, deliver or pick up packages, platooning or shifting”

Same agreement, Article 6 Section 6: no discipline based solely on GPS or telematics data, no inward-facing cameras or in-cab recording.

“No employee shall be disciplined based solely upon information received from GPS, telematics, or any successor system”

During 2023 bargaining UPS agreed to negotiate with the union before introducing technologies such as drones and driverless vehicles, and to a ban on disciplining drivers based on technology data.

“negotiate with the Teamsters at least 45 days before it introduces certain technology such as drones, driverless vehicles”