AsianFin — U.S. logistics giant UPS has announced the launch of what it calls the largest network restructuring in its history, including for the first time a voluntary buyout program for full-time delivery drivers in the United States.

The company said the move is aimed at cutting costs and improving operational efficiency amid what it described as an “unprecedented business environment.” Eligible drivers who choose to participate in the program will receive a substantial financial package while retaining existing retirement benefits, including pensions and healthcare coverage.

The decision has drawn sharp criticism from labor leaders. Sean O’Brien, president of the International Brotherhood of Teamsters—which represents UPS workers—accused the company of violating the terms of its 2023 labor contract. The agreement had committed UPS to create 22,500 new union jobs over several years.

O’Brien said the buyout plan undermines that commitment and called it a “shameful attempt” to sidestep the company’s obligations to invest in quality union jobs. He also warned that the move may constitute a breach of contract and could face legal challenge.