UPS stock has dropped 45% since the deal, and it plans to eliminate 20,000 jobs this year|Tomas Del Coro|CC BY-SA 4.0

UPS is offering buyouts to delivery drivers for the first time in its 117-year history, aiming to cut costs amid declining package volumes and rising labor expenses.

The company, which employs about 330,000 Teamsters-represented workers, aims to streamline its network.

UPS drivers earn an average annual salary of $170,000, according to a 2023 contract, and are among the highest-paid in the US for such roles.

However, UPS stock has dropped 45% since the deal, and it plans to eliminate 20,000 jobs this year. The Teamsters union criticized the buyouts as insufficient.

UPS already cut pilots in 2023 and now says Amazon deliveries aren’t profitable enough. The delivery service says it remains committed to its contract with the union.