UPS to cut 20,000 jobs as it prepares to halve Amazon shipments

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UPS said it will reduce 20,000 jobs this year and close more than 70 buildings as the logistical services group seeks to reduce costs and prepare for the size of the package from Amazon, its largest customer.

Discounts in jobs will target workers responsible for providing packages to customers and supporting UPS transportation and logistical services, and comes after the group last year reduced about 14,000 jobs, primarily in management roles.

The last reduction in Meadcount is part of the UPS plan to enhance efficiency and unify its local American network after it said in January that it had reached an agreement in principle with the “largest agent” to reduce its size by the second half of 2026.

Amazon 12 per cent of UPS revenues made $ 91 billion in 2024, according to the deposit of the 10-K delivery company, most of them in the group’s US local package sector. Its parcel folders are now competing from UPS and FEDEX.

“Amazon is our largest customer, but it is not our most profitable customer. Its margin is very frightening for US local businesses,” said Carol Tommy, CEO of UPS, in explaining the decision in January to reduce its business with the e -commerce group.

In an attempt to align its network with the upcoming decline in Amazon business, UPS said on Tuesday that she also expects to close 73 rented and owned buildings in 2025. She previously indicated that she would need to reduce aircraft and cars also.

The administration said that the procedures “cannot be Timelier”, as the company is moving in the Trump administration tariff for American commercial partners. UPS refused to update her outlook for this year because of the “uncertainty” of the macroeconomic economy.

Tommy said that UPS ships about 400,000 packages in the United States every day, which represents about 2 percent of its total global daily size.

She said that the American -Chinese trade lines represented 11 percent of the $ 18 billion in revenue sector in 2024. Other commercial corridors that ship to the United States amounted to about 18 percent of the department’s revenues, as the rest was completely abroad.

The Atlanta -based company has about 490,000 employees worldwide, with approximately 83 percent of those stationed in the United States, according to the latest file of the group.

UPS said it expected $ 3.5 billion from cost savings in 2025 of its plan and that it expects $ 400 million to $ 600 million of expenses this year related to the retirement of early assets, costs related to rent and the benefits of dismissal.

During the first three months of 2025, UPS was a net income of $ 1.2 billion on a low revenue from expected to 21.5 billion dollars.

UPS shares closed 0.4 percent on Tuesday.