UPS cutting costs, closing facilities and reducing Amazon volume to offset soft demand.

UPS is cutting 20,000 jobs and closing 73 facilities to offset soft parcel demand, offering buyouts to full-time delivery drivers for the first time. The company also plans to reduce Amazon volume by 50% by 2026. High labor costs and geopolitical uncertainty are affecting UPS’s bottom line, leading to workforce reductions. FedEx is also cutting costs, laying off over 480 employees and implementing cost-saving initiatives. UPS shares have declined over 24% in a year and trade at a high forward P/E ratio. The Zacks Consensus Estimate for UPS’s earnings has been revised downward, and it currently holds a Zacks Rank #4 (Sell).

Read more at Zacks Investment Research: UPS Looks to Cut Costs to Mitigate Demand Woes: What’s the Road Ahead? – July 7, 2025