UPS to move forward with large-scale layoffs amid lower Amazon shipments
Steve Forbes and forbes joins the Great Money Show Committee to speak with the international effects of high trade tensions between the United States and China.
UNICEL PARCEL Service (UPS) said on Tuesday that it will reduce about 20,000 jobs and close 73 of its facilities, as the giant cost fiery services amid a step to reduce charging sizes from its largest customers, Amazon, and broader economic uncertainty.
This step, which reaches about 4 % of the company’s workforce, constitutes the first large American company to move forward with workers’ widespread demobilization in the face of slowdown due to the Trump administration tariff.
The slowdown in global trade is likely to reduce the need for shipping services between companies, which may harm parcel delivery companies.
“The world has not faced enormous trading effects for more than 100 years,” CEO Carol Tommy said during the company’s profit call.
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UPS reduces its power by about 20,000, or 4 %, amid economic uncertainty and changing business with Amazon. (Justin Sullivan / Getty Emokires / Getty Emoz)
It also comes after UPS announced in January that it had reached an agreement with its largest agent, Amazon, to reduce its size by 50 % by the second half of 2026. Amazon 11.8 % of UPS revenues in 2024.
“The measures we take to re -configure our network and reduce the cost in our business cannot be more timing,” Tommy said.
| index | protection | last | Changing | % Change |
|---|---|---|---|---|
| UPS | United Parcel Service Inc. | 96.71 | -0.33 |
-0.34 % |
| amzn | Amazon.com Inc. | 187.39 | -0.31 |
-0.17 % |
Last year, UPS said it would reduce its power operating by 12,000 jobs, adding that it expects expenditures ranging between 400 million dollars and 600 million dollars related to the benefits of separation and rental discounts in 2025.
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The two companies reduce the number of shipments from the Amazon processed by UPS. (Xavi Lopez/SOPA/Lightrockket via Getty Images/Getty Images)
UPS also faces a sharp contraction of the sellers of e -commerce associated with the Chinese and Shein deal after the United States moved to collect customs tariffs on goods that were free from customs duties below the threshold of $ 800 per individual sale.
To help keep its customers update about customs tariffs and changes in commercial policy, UPS launched a website that tracks various developments in negotiations in addition to the ability to communicate with experts and explore options for managing customs tariff costs.
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UPS also provides a new UPS Global Checkout service that shows the cost of customs duties and duties on international purchases upon exit.
Reuters contributed to this report.
2025-04-29 15:20:00
