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2mo ago

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

Facing declining Amazon shipments and economic uncertainty, UPS aims to save $3.5 billion by reconfiguring its network and reducing costs.

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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 lay off 20,000 workers and shutter 73 facilities by June 2025 as part of its cost-cutting measures.
  • The company is reducing its Amazon shipping volume by 50%, citing low profitability from the e-commerce giant as a key factor.
  • CEO Carol Tomé highlighted the impact of President Trump’s tariffs, describing the global trade environment as the most uncertain in over a century.
  • UPS reported Q1 2025 revenue of $21.5 billion, a 0.7% decline year-over-year, while achieving $1.7 billion in adjusted operating profit.
  • The restructuring is expected to save $3.5 billion in 2025, with further network reviews potentially leading to additional closures.