United Parcel Service plans to close 22 package sortation centers with union employees in 18 states, including Dallas, Miami, Baltimore, and Atlanta. This move is part of UPS’s strategy for network consolidation and automation to improve profitability by better aligning capacity and labor with lower parcel volumes.

The Network of the Future plan envisions closing 200 sortation centers over five years. Last year, UPS reduced 48,000 frontline jobs and closed 93 owned and leased distribution centers. Chief Financial Officer Brian Dykes announced plans to close 24 facilities in the first half of the year and eliminate 30,000 jobs.

UPS intends to offer $150,000 plus accrued benefits to more than 100,000 drivers to entice them to resign. The Teamsters union is fighting this voluntary separation program in court, claiming it violates the contract and prevents workers from seeking redress if they choose to leave. UPS may resort to involuntary layoffs if not enough drivers take the severance package.

Read more at Yahoo Finance: UPS identifies 22 package facilities for closure