The United Parcel Service (UPS) plans to cut approximately 20,000 jobs in 2025 as part of a broader strategy to reduce costs and enhance profitability. The company cited “changes in global trade policy and new or increased tariffs” as contributing factors.
In its first-quarter earnings report, UPS announced the layoffs and reported consolidated revenues of $21.5 billion, slightly down from $21.7 billion during the same period last year. Additionally, the company plans to close 73 leased and owned buildings by June this year.
Carol Tomé, UPS’s chief executive officer, stated, “The actions we are taking to reconfigure our network and reduce costs across our business could not be timelier.” Despite macroeconomic uncertainties, UPS aims to emerge stronger and more agile.
Currently employing around 490,000 people, UPS has already reduced its workforce by 12,000 jobs last year. The latest cuts will primarily affect the operational workforce involved in package sorting, transport, and delivery.
These job reductions come amid concerns over the impact of Donald Trump’s tariffs on global trade, which have discouraged some customers from shipping as many goods. UPS also noted “current macro-economic uncertainty” as a reason for not updating its revenue forecasts.
Furthermore, UPS plans to consolidate facilities and workforce due to anticipated lower volumes from its largest customer, Amazon. The Teamsters union reminded UPS of its contractual obligation to create 30,000 Teamsters jobs under the current agreement.
— new from The Guardian