UPS Plans to Cut 20,000 Jobs Amid Amazon Shipping Cuts

ATLANTA, Georgia — United Parcel Service Inc. (UPS) announced on Tuesday that it will lay off approximately 20,000 workers this year and close 73 facilities. This decision comes as the logistics giant reduces its shipping volumes from Amazon, its largest customer, by half by 2026.

CEO Carol Tomé stated that these job cuts, which represent about 4% of UPS’s global workforce, aim to reconfigure the company’s operations in response to economic uncertainty and the need for greater efficiency. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,” Tomé said.

Last January, UPS disclosed a plan to decrease its Amazon business, which accounted for 11.8% of its overall revenue in 2024. The company reported that its package volume from Amazon was down 16% in the recent quarter, a steeper decline than anticipated. “Most of the Amazon business that we are giving up is not profitable for us,” Tomé mentioned.

UPS is also shifting towards automation, with plans for 400 facilities to adopt automated processes by the end of June. This could further reduce dependence on manual labor. “With this reconfiguration, we will also lessen our dependency on labor,” Tomé said.

Despite reporting a profit of $1.19 billion in its first quarter, UPS is cautious about future guidance due to the ongoing economic landscape. The company had previously forecasted revenue of approximately $89 billion for 2025 but has chosen to withhold updates given the uncertainty created by tariffs and trade fluctuations.

Tomé highlighted the impact of tariffs, particularly on Chinese imports, as a contributing factor to the operational adjustments. “There’s so much uncertainty around the China orders,” she said. Amid the shifting landscape, UPS has also launched a website to assist businesses in managing tariff costs.

Shares of UPS saw a slight increase in early trading following the announcement. The company anticipates that these decisions will ultimately strengthen its network and performance in the long term.