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THOUSANDS of UPS workers are going to be out of a job after the shipping giant announced it would be slashing over 70 operations.
The package delivery company is axing 20,000 positions this year, citing deepening economic woes and fading demand from its biggest customer.
A potential pullback from Amazon, UPS’s largest customer, is also putting pressure on the business.
The sweeping cuts will hit 73 facilities across the US, with closures set to be completed by June.
The move comes as UPS reels from the fallout of President Trump’s global trade tariffs, which have shaken up markets and driven up shipping costs.
“We’re facing massive disruptions we haven’t seen in a century,” CEO Carol Tomé said during the earnings call.
“The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,” she added.
In January, UPS announced that it had reached a deal with Amazon to reduce its shipping volume by more than 50% by the second half of 2026, ABC News reported.
Tomé said during the company’s Q4 earnings call that UPS had reassessed the partnership as the contract came up for renewal this year.
“Amazon is our largest customer but it’s not our most profitable customer,” she said at the time.
“Its margin is very dilutive to the US domestic business.”
She said the company explored other options before deciding that volume reduction was the best path forward.
UPS expects the downsizing to shave $3.5 billion off its expenses in 2025.
UPS currently employs about 490,000 workers, according to FactSet.
Revenue for the first quarter dipped to $21.5 billion, down 0.7% from the same time last year, reported CW affiliate KTLA.
What items will be affected by the tariffs?
AMERICANS should prepare to see significant prices changes on everything from avocados to cars under President Donald Trump’s new global tariffs.
Here is a list of some of the everyday products that could see a massive price tag surge.
- Coffee
- Tea
- Bananas
- Foreign-made cars
- Sneakers
- Furniture and other home goods
- Pharmaceuticals
- Video games
- Clothing
- Toys
- Washers and dryers
- Avocados
- Housing materials
However, UPS posted a modest gain in adjusted operating profit, which rose 0.9% to $1.7 billion.
The company did not break down which departments or roles would be affected by the 20,000 layoffs.
It also didn’t confirm how many of the closed sites are tied to package sorting, logistics, or support functions.
UPS did not provide updated full-year guidance.
“Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook,” UPS said in a statement.
Earlier this year, UPS projected full-year 2025 revenue at around $89 billion.
With costs rising and trade routes shifting, UPS is leaning heavily on its restructuring plan.
