UPS and USPS are cutting jobs to streamline operations and reduce costs
From Yahoo Finance: 2025-05-05 13:48:00
UPS and USPS are cutting jobs to streamline operations and reduce costs. UPS is reducing its global workforce by 4% (20,000 jobs) by June, while USPS is phasing out 10,000 workers. UPS will close 73 buildings and increase automation in 400 facilities to save $3.5 billion.
Outgoing Postmaster General Louis DeJoy promised to work with Elon Musk’s DOGE to cut costs. USPS revealed a 10-year plan to overhaul operations due to $200 billion in losses. DeJoy oversaw a 20% reduction in USPS workforce to save $200 million in what was called “the Friday night massacre.”
UPS announced it was halving business with Amazon, as CEO Carol Tomé said Amazon is the largest but not most profitable customer. The Teamsters union, representing 300,000 UPS workers, protests job cuts. An August 2023 agreement promised 30,000 Teamster jobs at UPS.
The UPS earnings report did not address the impact of tariffs on Chinese-made products, which make up 70% of items shipped via Amazon. Eleven percent of UPS’s international revenue is tied to Chinese deliveries. UPS is not providing updates to its full-year outlook due to macro-economic uncertainty.