UPS announced on Tuesday that it plans to cut 20,000 jobs this year and close 73 facilities over the next two months. This decision comes as UPS scales back its operations with Amazon and navigates broader economic uncertainties. The company stated in its first-quarter earnings report that these measures are expected to save $3.5 billion annually, citing a reduction in volume from its largest customer, Amazon. In January, UPS revealed its intention to decrease Amazon shipments by over 50% by mid-2026, aiming to enhance profitability and agility. Amazon spokesperson Kelly Nantel acknowledged UPS’s request to reduce shipping volumes, respecting their operational needs. Despite this, Amazon had previously offered to boost shipping volumes with UPS. UPS will continue to assess shipment volumes and may identify additional closures. First-quarter consolidated revenue fell by 0.7%, while consolidated operating profit rose by 3.3% compared to the same period last year. UPS CEO Carol Tomé emphasized the timeliness of reconfiguring their network and reducing costs. Sean M. O’Brien, president of the Teamsters union, noted that UPS is contractually obligated to create 30,000 union jobs. UPS did not immediately comment but assured adherence to its contract. The layoffs coincide with concerns about President Trump’s tariffs affecting economic activity and potential price increases. Tomé highlighted the uncertainty caused by the 145% tariff on Chinese goods set to begin in May. “The world hasn’t faced such enormous trade impacts in over a century,” she remarked. — new from The Washington Post
