News photo by Josh Jambor A row of UPS delivery trucks are parked at the UPS facility on M-32 in Alpena. Some UPS drivers in northern Michigan are being offered a $150,000 buyout package to leave their current positions. Drivers who do accept the offer could be laid off later on.

ALPENA – Some UPS drivers in northern Michigan have received letters offering them a severance package, also known as the Driver Choice Program (DCP), to leave their jobs.

The drivers are being offered $150,000, before taxes, to resign. Drivers who decline the buyout package could face layoffs if UPS doesn’t meet their labor goals via employees accepting the company’s offer.

The move is part of an effort by UPS to downsize its workforce by 30,000 and eliminate two dozen facilities, but they have not yet announced which facilities will close.

The UPS ‘s primary shipping centre is located on M-32 in Alpena’s, Alpena’s UPS store, which was located on Ripley Boulevard, was sold and closed in August of 2024.

The News received a copy of the letter being sent to thousands of UPS employees around the country it stated the following:

“The world is changing, and the rate of change is accelerating. As a result, we are continuing to reshape our network and will be adjusting staffing across the U.S. to match our needs.”

“We understand that you appreciate having choices, including the option to move in another direction,” the letter also stated. “As a result, we are offering you an opportunity to voluntarily leave UPS and receive a separation package of $150,000, in addition to any vested pension and healthcare benefits received.”

According to an article published by Reuters on Feb. 19, UPS attempted a previous buyout program last year that local employee unions opposed.

The International Brotherhood of Teamsters represents most UPS drivers.

The package offered to drivers last year included $1,800 in severance pay per year of service, with a $10,000 minimum, to eligible drivers.

UPS did not get the response it had hoped for, with only 3,000 employees opting in; the offer was increased this time around.

The new offer includes the $150,000 payment, which will be taxed as supplemental income, in addition to any retirement benefits earned, including pension and healthcare. Current drivers can apply through the DCP portal until March 12.

Employees who do not accept the proposed deal, may face layoffs down the road if UPS doesn’t reach its labor goal through the buyout program.

The Teamsters union filed a motion to stop the company from implementing the plan; however, that motion was denied by Chief U.S. District Judge Denise Casper in Massachusetts on Friday. The judge ruled that the union failed to show the plan causes “irreparable harm.”

In an article published by Yahoo Finance, Casper also said, “disputes over the program should be handled through the arbitration process rather than court intervention.”

Demand is under pressure for the logistics service as e-commerce growth has gained popularity since the pandemic. UPS and Amazon have reached a mutual agreement, in principle, for UPS to reduce its delivery volume by more than 50% by the second half of 2026.

UPS has also started outsourcing certain economy shipments to the U.S. Postal Service.

The letter sent to drivers said most separation dates will be April 26.

If drivers want an earlier date, they must make a request. It also states that, “no additional voluntary separation offers are planned after this one.”

According to Casper’s ruling, UPS drivers who do not accept the buyout offer risk facing involuntary layoffs anyway.

Josh Jambor can be reached at jjambor@thealpenanews.com.