Can UPS Shrink Its Way to Greatness?

In this episode of Parcel Perspectives, Glenn Gooding breaks down why UPS’s aggressive cost-cutting strategy — marked by 20,000 layoffs, 100+ facility closures, and a drawdown of Amazon volume — may be creating more problems than it solves. He challenges the notion that UPS can ‘shrink to greatness,’ and outlines what this shift really means for shippers.

Glenn explains how structural labor costs, the end of USPS DDU access, and the collapse of the SurePost workshare model are placing low-margin parcels back onto the backs of UPS’s highest-paid drivers. He outlines how this is raising the company’s cost to serve, just as its network flattens and competition heats up.

With market share shrinking and margin pressure rising, shippers are seeing pricing strategies become more volatile — including unpredictable cost add-ons that are difficult to anticipate or quantify. Glenn closes with clear takeaways for shippers: diversify your carrier base, understand your true parcel costs, and be ready to adapt as UPS leans harder into revenue recovery.