UPS announced Tuesday that it will eliminate 20,000 jobs and shut down 73 buildings in the US by the end of June, as the company continues reducing the volume of packages it handles for Amazon.
The decision is part of a broader plan to streamline operations and lower costs amid changing business conditions.
UPS CEO Carol Tomé said the company is reconfiguring its network to become more efficient. "The actions we are taking to reduce cost across our business could not be timelier," Tomé stated. "With our actions, we will emerge as an even stronger, more nimble UPS."
According to CNN, the job cuts, which account for about 4% of UPS's global workforce, are unrelated to tariffs and are instead tied to the company's increased use of automation and its move to scale back business with Amazon.
UPS said that about 400 of its facilities are expected to become partly or fully automated, which will reduce the need for manual labor.
UPS and Amazon have maintained a strong working relationship for almost 30 years. But earlier this year, UPS chose to reduce the amount of business it does with the retail giant.
UPS plans 20,000 job cuts this year in pullback from Amazon https://t.co/P9VM0dyIbv pic.twitter.com/OEO4lIAIYi
— Financial Post (@financialpost) April 29, 2025
UPS Sees 16% Drop in Amazon Shipments, Plans Bigger Cut
Earlier this year, UPS CEO Carol Tomé acknowledged that while Amazon continues to be the company's largest customer in terms of volume, it does not contribute the highest profit margins.
UPS has already seen a 16% drop in Amazon-related volume in the last quarter and plans to cut it by over 50% by mid-2026.
The Teamsters union, which represents over 300,000 UPS employees, issued a strong response following recent corporate layoffs at the company.
Union leadership made it clear that while they would not oppose UPS reducing positions in corporate management, any threat to union-represented jobs would be met with significant resistance.
Teamsters President Sean O'Brien emphasized that the union is prepared to take strong action if necessary to protect the well-paying jobs of its members.
UPS has announced its financial performance for the first quarter, posting a net income of $1.19 billion or $1.40 per share,
Adjusted earnings reached $1.49 per share, beating analysts' expectations. UPS reported first-quarter revenue of $21.55 billion, exceeding Wall Street's forecast of $21.06 billion, AP said.
Though UPS isn't updating its 2025 revenue outlook of $89 billion, the company warned that ongoing economic uncertainty — including new tariffs on Chinese imports — could impact future earnings.
UPS CEO Carol Tomé addressed concerns regarding the company's business activity in China, highlighting ongoing uncertainty.
Originally published on vcpost.com
