UPS Plans Major Job Cuts Amid Decreased Amazon Shipments

ATLANTA, Ga. — United Parcel Service Inc. (UPS) announced plans to cut about 20,000 jobs and close more than 70 facilities in response to a significant reduction in the volume of packages it handles for Amazon. The company expects to implement these changes this year, with the closure of 73 leased and owned buildings scheduled by the end of June.

UPS CEO Carol Tomé stated in a press release, “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”

In January, UPS entered into an agreement with Amazon, its largest customer, to reduce its shipment volume by more than 50% by the second half of 2026. During a fourth-quarter earnings call that month, Tomé noted the long-standing partnership with Amazon but highlighted the company’s need to reassess the relationship once their contract was up.

“Amazon is our largest customer but it’s not our most profitable customer,” Tomé explained. “Its margin is very dilutive to the U.S. domestic business.” After evaluating various options, UPS determined that reducing Amazon’s volume was the best course of action.

According to FactSet, UPS employs around 490,000 workers globally. On the same day, the company reported a first-quarter earnings of $1.19 billion, or $1.40 per share, for the period ending March 31. Adjusted earnings were $1.49 per share, surpassing the $1.44 forecast by analysts.

Revenue for the quarter reached $21.55 billion, exceeding Wall Street’s projected $21.06 billion. However, UPS has refrained from providing updates to its previously announced full-year outlook, citing ongoing macroeconomic uncertainty and projecting a revenue of approximately $89 billion for 2025. Following the announcement, UPS shares experienced a slight increase in morning trading.