From Yahoo Finance: 2025-04-29 11:20:00

United Parcel Service (UPS) will cut 20,000 jobs and close 73 facilities due to reduced shipping volumes from Amazon and economic uncertainty. This move represents a 4% reduction in UPS’ workforce, the first big layoffs by a major American company in response to slowing trade from Trump’s tariffs.

UPS recently announced a workforce reduction of 12,000 jobs and expects expenses of $400-600 million related to separation benefits in 2025. The company reached an agreement with Amazon to cut its volume by 50% by 2026. Amazon accounted for 11.8% of UPS’ revenue in 2024.

UPS is also facing reduced volume from China-linked e-commerce sellers due to new tariffs. To help customers navigate trade policy changes, UPS launched a website tracking developments and offering expertise to manage tariff costs. A new UPS Global Checkout service shows customs fees and duties on international purchases at checkout.

These changes come as UPS faces a significant downturn in shipments from Amazon and other sources. The company’s CEO, Carol Tome, emphasized the need for timely network reconfiguration and cost reduction. UPS is adapting to evolving trade dynamics and reducing its workforce to align with changing business realities.

Read more: UPS cutting 20K jobs due to fewer Amazon shipments