UPS cutting 20,000 jobs amid reduction in Amazon shipments

UPS connected Tuesday announced it is readying to chopped 20,000 jobs this year, portion of a cost-cutting effort that's linked to less deliveries from Amazon, its biggest customer.

The shipping company, which operates successful implicit 200 countries, presently has astir 490,000 employees. The layoffs volition interaction somewhat implicit 4% of its workforce. This follows an announcement from UPS past twelvemonth that it would chopped 12,000 positions.

The determination is portion of the company's program to consolidate UPS's facilities and workforce. Along with the occupation cuts, the institution announced it volition besides adjacent 73 of its buildings by the extremity of June 2025 and said that it whitethorn people further buildings for closure.

"These actions volition alteration america to grow our U.S. Domestic operating borderline and summation profitability," Brian Dykes, the main fiscal serviceman of UPS said during an net telephone connected Tuesday morning.

In a Tuesday regulatory filing, UPS said the cuts are successful "connection with our anticipation of little volumes from our largest customer." The company, which announced $21.5 cardinal successful gross for this past quarter, expects to prevention $3.5 cardinal this twelvemonth arsenic a effect of its consolidation plan.

"Strong" narration with Amazon

The institution successful January said it had reached an statement with Amazon to alteration its transportation measurement by much than 50% successful the 2nd fractional of 2026.

"The simplification of bundle measurement from Amazon is thing UPS chose to bash arsenic we absorption connected gross quality, and summation home operating borderline and profitability," a UPS spokesperson told CBS MoneyWatch successful an email.

Amazon said successful an email to CBS MoneyWatch that the institution has a "strong moving relationship" with UPS and that it had really offered to summation UPS' volumes earlier the transportation institution made the determination to trim its Amazon shipments.

"Due to their operational needs, UPS requested a simplification successful measurement and we surely respect their decision," said Kelly Nantel, an Amazon spokesperson. "We'll proceed to spouse with them and galore different carriers to service our customers.

UPS delivers millions of packages worldwide each year. Last year, the institution delivered an mean of 22.4 cardinal parcels per day, oregon 5.7 cardinal for the full year.

UPS shares slipped 1.13 cents, oregon 1.16%, successful aboriginal trading.

In its quarterly net statement, the institution besides mentioned the hazard that shifts successful planetary commercialized argumentation could person connected business. The Trump medication has introduced sweeping caller tariffs successful caller months that person already began to interaction the travel of goods successful and retired of the country, and astir the world.