UPS to cut additional 30,000 jobs in Amazon unwind, turnaround plan

United Parcel Service on Tuesday announced that it was planning to eliminate an additional 30,000 jobs this year as part of winding down its partnership with Amazon and a multi-year turnaround plan.

CFO Brian Dykes said on a call with analysts Tuesday following the company’s quarterly earnings release that UPS plans to reduce total operational hours by approximately 25 million associated with the Amazon decline.

“In terms of variable costs, we expect to reduce operational positions by up to 30,000,” Dykes said. “This will be accomplished through attrition, and we expect to offer a second voluntary separation program for full-time drivers.”

The planned job cuts come after UPS eliminated 48,000 jobs last year, 34,000 of which were operational and 14,000 of which were management. The company had previously estimated those combined reductions to total around 20,000.

UPS is in the midst of a turnaround lan under CEO Carol Tomé, aiming to reinvigorate the business. Though Amazon was previously UPS’ largest customer, the two companies are in the process of ceasing operations together. UPS said Tuesday it expects a total of $3 billion in savings related to the Amazon unwind.

UPS reported fourth-quarter earnings on Tuesday, beating Wall Street estimates and citing encouraging process in its turnaround efforts.

Shares of the company were up almost 2% in morning trading.