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UPS to Shed 3,000 UK Delivery Jobs, Shift to Contractor Model

United Parcel Service will eliminate more than 3,000 delivery positions across 51 United Kingdom sites by June 2027, replacing employee drivers with independent contractors operating their own vehicle fleets. The workforce reduction will cut UPS's UK headcount from 4,000 to 800 people, according to Unite, Britain's largest trade union. The carrier is exploring a model similar to Amazon's approach, contracting with outside service providers responsible for managing local fleets and hiring in their delivery areas. Some displaced workers may find employment with third-party couriers selected as delivery partners. The restructuring raises questions about potential replication in the United States, where the Teamsters union has accused UPS of violating collective bargaining agreements by routing parcels to gig-worker subsidiaries. UPS stated it is evaluating options to enhance customer experience and operational efficiency. Unite has condemned the plan and is considering strike action in response.