United Parcel Service (UPS.US) reaches a settlement with the truck driver union, providing $150,000 in early retirement compensation to 7,500 drivers.

United Parcel Service (UPS.US) said last Sunday that it had reached an agreement with the International Brotherhood of Teamsters to set a cap on the severance packages offered to 7,500 drivers affected by the company's layoffs plan. According to the agreement, UPS will provide a compensation of $150,000 to drivers who choose to take early retirement. The union had previously tried to stop the parcel delivery giant from implementing the "Driver Select Program," arguing that it was started without negotiation and violated the labor agreement of 2023. The union claimed that the relevant contract terms overall prohibited UPS from signing such individual agreements with its drivers. At the end of January, UPS released its fourth-quarter financial report with full-year revenue guidance exceeding expectations, indicating that its strategy of reshaping the network by cutting low-profit parcel business was beginning to show results. The Atlanta-based courier giant expects revenue to reach approximately $89.7 billion in 2026, higher than the analyst average expectation of $87.95 billion. This outlook is the company's first full-year revenue guidance in a year, signaling a recovery in business visibility after last year's turbulent trade policies disrupted demand forecasts. UPS announced in January of this year that it plans to cut up to 30,000 jobs and close 24 facilities within the year. This is aimed at reducing the low-profit parcel business of delivering millions of packages for its largest customer, online retailer Amazon.com, Inc.