UPS offers voluntary buyouts to full-time U.S. drivers amid major restructuring

UPS offers voluntary buyouts to full-time U.S. drivers amid major restructuring

United Parcel Service (UPS) has announced a voluntary buyout program for its full-time U.S. drivers as part of its ongoing major network reconfiguration. The program, known as the Driver Voluntary Separation Program (DVSP), offers drivers $1,800 per year of service, with a minimum payout of $10,000. This financial package is in addition to any earned retirement benefits, including pension and healthcare [1][2][3][4].

The buyout program is the first of its kind for delivery drivers at UPS. It aims to provide drivers with a financial incentive to leave the company, which is undergoing significant changes to boost profitability. These changes include facility closures, a reduction in Amazon deliveries by over 50% by 2026, and the cutting of approximately 20,000 U.S. positions this year [1][2][4].

The International Brotherhood of Teamsters, which represents over 300,000 UPS employees, has publicly urged drivers to reject the buyout offers. The union argues that UPS is violating the national contract and that the buyout program is an attempt to "shovel more cash to its executives and buy back even more of its own stock" [1][3].

UPS, however, maintains that the DVSP is an opportunity for drivers to receive a generous financial package if they choose to leave the company. The company remains committed to honoring the labor agreements reached in 2023 with the Teamsters union [2][3][4].

The voluntary buyout program is open to drivers with at least 25 years of service. Drivers must apply between July 18 and July 31, with separation dates set between August 31 and October 31, based on local business needs. Additional applications may be considered for separation dates between February 1, 2026, and March 31, 2026, if the maximum number of applications is exceeded [2].

UPS employs more than 10,000 full-time drivers who have served 25 years or more. The company emphasizes that the program is entirely voluntary, and each driver is encouraged to choose the option that is best for their family [4].

References:
[1] https://www.wsbtv.com/news/local/fulton-county/ups-delivers-voluntary-buyout-option-drivers-amid-companys-historic-reconfiguration/SN3NEIQIVBDT3IULRE3VD2677A/
[2] https://www.supplychaindive.com/news/ups-driver-severance-payment-offer-dates/753450/
[3] https://cdllife.com/2025/ups-offers-full-time-drivers-buyout-of-1800-per-year-of-service-if-they-agree-to-resign/
[4] https://www.fox26houston.com/news/ups-delivery-drivers-buyouts