A joint package numbered (UPS.US) reached a settlement with the Truck Drivers Union, and 7,500 drivers received $150,000 in early retirement compensation.

Zhitong Finance APP learned that United Parcel Service (UPS.US) said last Sunday that it has reached an agreement with the International Brotherhood of Teamsters (Teamsters) to set a cap on the severance compensation package offered to 7,500 drivers in response to disputes triggered by the company’s planned layoffs. Under the agreement, United Parcel Service will provide $150,000 in compensation to drivers who retire early.

The union had previously tried to stop the parcel delivery giant from rolling out the “Driver Choice Program,” arguing that the program was launched without bargaining and violated the parties’ 2023 labor agreement. The union contends that the relevant contract provisions generally prohibit United Parcel Service from entering into such individual agreements with its drivers.

At the end of January, United Parcel Service released its fourth-quarter earnings report. Its full-year revenue outlook came in better than expected, indicating that its strategy to reshape its network by cutting back on low-profit package business is starting to show results.

The Atlanta-based shipping giant said it expects 2026 revenue to be about $89.7 billion, higher than the $87.95 billion average analysts’ estimate.

This outlook is the company’s first time providing full-year revenue guidance in the past year, marking that, after last year’s turbulent trade policies disrupted demand outlooks, its business visibility is being restored.

United Parcel Service announced in January this year that it plans to cut up to 30,000 jobs during the year and close 24 facilities. The move is intended to reduce the business of shipping millions of low-profit packages to its largest customer, online retail giant Amazon.