UPS cutting around 20,000 jobs due to 'new or increased tariffs'; 73 buildings closing

Consolidation efforts for UPS travel arsenic President Donald Trump's looming tariffs proceed to interaction U.S. and planetary trade, arsenic companies crossed the state are reducing costs successful mentation for a imaginable economical fallout.

For UPS specifically, it cautioned successful January that it was expediting its program to trim millions of deliveries for its largest customer, Amazon.com, which accounted for 11.8% of its wide gross successful 2024, CNBC reported.

"The actions we are taking to reconfigure our web and trim outgo crossed our concern could not beryllium timelier," Carol Tomé, UPS's main enforcement officer, said successful the report. "The macro situation whitethorn beryllium uncertain, but with our actions, we volition look arsenic an adjacent stronger, much nimble UPS.”

White House property caput Karoline Leavitt lashed retired astatine Amazon aft a study said the e-commerce elephantine was readying to database the costs of Trump's tariffs adjacent to the full prices of products, which Leavitt called "a hostile and governmental act" portion speaking to reporters connected April 29.

In summation to the presumption cuts, UPS said it plans to adjacent 73 leased and owned buildings by the extremity of June 2025, according to the net report.

"We are continuing to reappraisal our web and whitethorn place further buildings for closure," the Atlanta-based parcel transportation work said.

The occupation cuts and gathering closures are expected to prevention UPS $3.5 cardinal successful 2025, the net study says. UPS' consolidation and cost-saving initiative, "Network Reconfiguration and Efficiency Reimagined," is expected to extremity successful 2027, according to the parcel transportation service.

UPS, the world’s largest bundle transportation firm, forecasted successful January a full-year gross of $89 billion, CNBC reported.

USA TODAY contacted UPS connected April 29 for further comment.

In January 2024, UPS announced the layoffs of astir 12,000 employees crossed the globe to "align resources for 2024."

During a institution net telephone astatine the time, Tomé said the cuts would prevention the institution astir $1 billion. His comments came aft UPS underwent a monolithic year-over-year diminution successful revenue.