UPS Announces Major Job Cuts Due to Economic Challenges
UPS is set to lay off approximately 20,000 employees in response to “new or increased tariffs” and other economic challenges, leading to the closure of 73 facilities. The job cuts, scheduled for 2025, reflect the profound impact of shifting tariffs and economic conditions both in the U.S. and globally on its operations.
The announcement came on April 29 with UPS’s first quarter earnings report. Although the parcel delivery giant recorded consolidated revenues of $21.5 billion, this is a slight decline from the $21.7 billion reported in the previous year during the same period.
UPS’s consolidation efforts are prompted by the ripple effect of President Donald Trump’s tariffs which have influenced U.S. and international trade. Amid these changes, businesses nationwide are strategizing to mitigate potential economic setbacks.
In particular, UPS has been proactive, as evidenced by its January warning about scaling back on millions of deliveries for Amazon.com, its largest customer. In 2024, Amazon made up 11.8% of UPS’s overall revenue. “The proactive measures we’re implementing to reconfigure our operations and cut costs are essential in these times,” stated Carol Tomé, UPS’s CEO. “Despite the uncertain global economic outlook, these steps will strengthen and streamline our company,” she added.
Meanwhile, White House press secretary Karoline Leavitt criticized Amazon after reports emerged that the e-commerce giant intended to display the costs of Trump’s tariffs alongside product prices. Leavitt labeled this move “a hostile and political act” during her address to the media on April 29.
Besides scaling down its workforce, UPS plans to shut 73 of its leased and owned sites by June 2025 as detailed in the financial report. “Our ongoing review of our operations may lead to further closures,” stated the Atlanta-based delivery firm.
Projected savings from the layoffs and closures are estimated to be $3.5 billion in 2025, according to the report. The overall cost-saving initiative, “Network Reconfiguration and Efficiency Reimagined,” is anticipated to reach completion by 2027.