United Parcel Service revealed plans Tuesday to eliminate approximately 20,000 positions and shutter 73 facilities by the end of June as part of a significant restructuring effort. The job cuts represent about 4% of UPS’s total workforce of roughly 490,000 employees and follow last year’s announcement that the company would cut 12,000 positions. CBS News
The Atlanta-based shipping giant cited its decision to reduce Amazon shipment volumes as a key factor behind these changes. In January, UPS reached an agreement with Amazon, its largest customer, to decrease delivery volume by more than 50% by the second half of 2026. CBS News
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” CEO Carol Tomé said in a statement on Tuesday. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.” Associated Press
UPS officials indicated the company is still reviewing its network and may identify additional buildings for closure. Brian Dykes, UPS’s chief financial officer, stated during Tuesday’s earnings call that “These actions will enable us to expand our U.S. Domestic operating margin and increase profitability.” CBS News
Interestingly, Amazon said it had actually offered to increase UPS’s volumes before the delivery company made the decision to reduce its Amazon shipments. CBS News “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision,” an Amazon spokesperson said. Reuters
The delivery giant is also facing broader economic challenges. UPS becomes the first major American company to implement large-scale layoffs amid slowing trade related to recent tariff policies. Fox Business During the earnings call, Tomé expressed concern about potential impacts to global trade, noting the company handles approximately 400,000 imported parcels daily, representing about 2% of their total daily package volume. CBS News
Despite these changes, UPS remains a logistics powerhouse. Last year, the company delivered an average of 22.4 million parcels per day, totaling $ 5.7 billion for the entire year. CBS News.