UPS needs to trim its workforce and is offering full-time U.S. drivers cash to walk away.

The company just launched a voluntary separation program that pays $1,800 for every year a driver has worked, with a $10,000 minimum.

Drivers keep their retirement benefits, including pensions and healthcare, UPS shared in a press release. The application window runs through July 31.

UPS plans to begin most separations between August 31 and October 31

If too many drivers sign up, the company will approve the longest-serving first.

If needed, UPS may approve a second wave between February and March 2026, Supply Chain Dive reported after seeing an internal communication.

The company introduced this program while restructuring its delivery network

The company is closing facilities, reducing package volume from Amazon by more than half, and slashing 20,000 U.S. jobs. UPS framed the buyout as a way to respect veteran drivers while aligning operations with current demand.

More than 10,000 full-time drivers have 25 years or more with the company, it says. UPS believes some of them might welcome the payout and a clean exit.

The company says this offer doesn’t replace anyone’s retirement but adds flexibility for those ready to leave on their own terms.

The International Brotherhood of Teamsters sees it differently

The union called the program illegal and accused UPS of violating its 2023 labor agreement. 

Teamsters President Sean O’Brien said the union will fight the buyout with every tool it has. The Teamsters urged drivers to reject the offer and warned that no one should feel pushed out.

UPS hasn’t shared a plan if too few drivers apply

For now, the company says the offer is optional and emphasizes that each driver should decide what’s best for their future.

But this clearly isn’t just a round of early retirements. It’s a signal. UPS is overhauling, and drivers are feeling the pressure…along with the “opportunity” to leave on certain agreed terms.