UPS Automates Four More Facilities Ahead of Peak Season in Bid for $3 Billion Cost Savings

United Parcel Service (NYSE: UPS) has converted four additional package sortation centers to automated operations — in Denver, St. Paul, Minnesota, Syracuse, New York, and Portland, Oregon — ahead of the holiday shipping peak, the company said this month. The conversions are part of a multiyear network overhaul to lower structural costs and restore margins, aimed at higher-yield segments as parcel volume growth slows from pandemic-era highs. UPS plans to close 200 manual sort facilities over five years, consolidating into larger automated hubs, a downsizing that has eliminated 30,000 positions. UPS targets about $3 billion in annual cost savings by 2028. As of July 1, 68.5% of U.S. volume moved through automated facilities, up from 64% a year earlier. Cost per piece at an automated facility runs about 28% below a conventional mechanical site, executives said on the second-quarter results call. UPS also is hiring 100,000 seasonal workers nationwide.