UPS cutting 20,000 jobs, expediting plan to reduce Amazon deliveries
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- UPS plans to cut approximately 20,000 jobs and close 164 facilities in 2025, citing tariffs and economic conditions.
- The company aims to reduce its Amazon delivery volume by over 50% by June 2026.
- These cost-cutting measures are projected to save UPS $3.5 billion in 2025.
- The company’s consolidation and restructuring efforts are expected to be completed by 2027.
The United Parcel Service (UPS) is expected to reduce its workforce by roughly 20,000 during 2025, citing “new or increased tariffs” and “changes in general economic conditions in the U.S. or internationally” for the cuts.
UPS announced the layoffs April 29 in its first quarter earnings report, in which the parcel delivery service said it made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago. The shipping company also said it would be closing roughly 164 facilities by the end of the year.
Consolidation efforts for UPS come as President Donald Trump’s looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout. In 2024, UPS employed around 490,000 people worldwide, including about 330,000 Teamsters-represented jobs in the U.S.
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” Carol Tomé, UPS’s chief executive officer, said in the report. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
UPS reducing Amazon delivery volume by 50%: CFO
For UPS specifically, it cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, Amazon.com, which accounted for 11.8% of its overall revenue in 2024, CNBC reported.
“We are reducing the amount of volume we deliver for Amazon by more than 50% by June 2026,” Brian Dykes, UPS’ chief financial officer, said in a statement to USA TODAY. “Associated with this volume reduction, we are undertaking the largest network reconfiguration in our history. This effort has been combined with our Network of the Future initiative as both will help drive us to a more efficient network.”
According to Dyke, UPS’ “planned reductions are in line with the total Amazon volume decline.”
UPS to close 73 leased, owned buildings by end of June 2025
In addition to the position cuts, UPS said it plans to close 73 leased and owned buildings by the end of June 2025, according to the earnings report. Dyke said the total number of operational closures by the end of the year is expected to be 164.
The closures will consist of facilities that are part of UPS’ U.S. Ground operation, where packages are unloaded, sorted and loaded, a spokesperson told USA TODAY.
“We are continuing to review our network and may identify additional buildings for closure,” the Atlanta-based parcel delivery service said.
The job cuts and building closures are expected to save UPS $3.5 billion in 2025, the earnings report says. UPS’ consolidation and cost-saving initiative, “Network Reconfiguration and Efficiency Reimagined,” is expected to end in 2027, according to the parcel delivery service.
UPS, the world’s largest package delivery firm, forecasted in January a full-year revenue of $89 billion, CNBC reported.
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