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United Parcel Service (UPS) said Tuesday it will cut around 20,000 jobs and shutter 73 at its facility as it cuts its largest customer, Amazon, and the logistics giant amid movement to reduce delivery volumes from broader economic uncertainties.
The move, which amounts to a cut of about 4% in the company's workforce, constitutes the first large American company to advance a massive layoff in the face of slowing trade due to the Trump administration's tariffs.
A slowdown in global trade reduces the need for inter-company shipping services, potentially damaging parcel delivery companies.
“The world has not faced such a major potential impact to trade for over 100 years,” CEO Carol Tome said in the company's revenue call.
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UPS is reducing its workforce by around 20,000 or 4% amidst economic uncertainty and business changes on Amazon. (Justin Sullivan/Getty Images/Getty Images)
It also came after UPS announced in January that it had reached an agreement with its biggest customer, Amazon, to cut by 50% by the second half of 2026. Amazon accounted for 11.8% of UPS' total revenue in 2024.
“The actions we take to reconfigure our network and reduce costs for our overall business are not modest,” Tome said.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| UPS | United Parcel Service Inc. | 94.60 | -0.70 |
-0.73% |
| amzn | Amazon.com Inc. | 190.20 | +5.78 |
+3.13% |
Last year, UPS said it would cut its workforce with 12,000 jobs, adding that it would expect to cost between $400 million and $600 million related to segregation benefits and lease-related cuts in 2025.
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Both companies are reducing the number of shipments from Amazon processed by UPS. (Xavi Lopez/SOPA Images/Lightrocket bygetty Images/Getty Images)
The UPS is also facing a major recession from e-commerce sellers of China-related bargains after the US moved to collect tariffs on goods that were tax-free at the $800 threshold per personal sale.
To stay up to date on changes to customer tariffs and trade policy, UPS has launched a website that tracks various developments in negotiations, providing the ability to connect with experts and explore options to manage tariff costs.
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UPS also offers a new UPS Global Checkout service that shows the customs fees and obligation costs for international purchases at checkout.
Reuters contributed to this report.
