Employees at United Parcel Service are approaching the deadline of March 12, 2026 to decide whether to accept the voluntary retirement buyout the company is offering, as they prepare for potential layoffs due to operational changes.
The offer, formally named the “Driver’s Choice Program,” provides eligible drivers with $150,000 in addition to any pension and healthcare benefits they have accrued. Drivers who accept this offer are expected to leave work in late April 2026.
UPS says the program will be the final opportunity for employees to voluntarily separate from the company. The current offer is the second being made by UPS; the first was announced to drivers in July 2025, offering $1,800 per year of service. Both in an effort to reduce the company’s workforce.
The restructuring of the company is largely due to the expansion of Amazon, a former partner of UPS. Amazon is continuing to expand its delivery network, reducing the number of packages being handled by UPS. UPS in turn plans to scale back its delivery operations with workforce reduction and closing some facilities.
Teamsters, the union representative for UPS drivers, have publicly spoken out against the buyout, posting on social media on March 4, “UPS is trying yet another desperate, shameless, and illegal buyout of Teamsters drivers, which violates at least 6 articles of the UPS Teamsters National Master Agreement. We will not be sold out or sold short.”
Some drivers say the offer is appealing to workers who were already nearing retirement to potentially retire early. Israel Gonzalez, A UPS driver of 30 years, said the buyout may be beneficial to longtime employees, but less helpful for younger drivers who have not yet earned any benefits.
“For me, it’s good, ’cause I was about to retire,” Gonzalez shared. “If you haven’t gotten your years in, maybe not. They can keep their pension, but they won’t keep their benefits, which will save you the most throughout your life.”
The buyout may help UPS determine how it chooses to proceed with reducing production and restructyring as shipping demands continue to change.
