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UPS to Cut 20,000 Jobs and Close 73 Facilities in Major Restructuring

The company cites declining Amazon shipping volumes, cost-saving initiatives, and trade uncertainties as key drivers of its Network of the Future overhaul.

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A UPS delivery truck drives through a puddle in Oakland. The company announced on Tuesday that it will eliminate 20,000 jobs and close 73 facilities by June, citing economic uncertainty and a significant reduction in business from Amazon, its largest customer.
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Overview

  • UPS announced plans to eliminate 20,000 jobs in 2025, representing about 4% of its global workforce, as part of a broad restructuring effort.
  • The company will close 73 leased and owned facilities by the end of June 2025, with more closures possible following ongoing network reviews.
  • UPS aims to save $3.5 billion in 2025 through workforce reductions, facility closures, and increased reliance on automation under its Network of the Future strategy.
  • The layoffs follow a January agreement to reduce Amazon shipping volumes by over 50% by mid-2026, as the e-commerce giant accounted for 12% of UPS's 2024 revenue but was deemed less profitable.
  • UPS withheld its full-year financial guidance for 2025, citing macroeconomic uncertainty and the impact of President Trump's tariffs on global trade patterns.