UPS to cut 20,000 jobs, close 73 sites amid Amazon pullback and cost cuts

UPS plans to cut 20,000 jobs this year, about 4% of its global workforce, according to CNN, which reported the cuts are unrelated to tariffs but instead due to increased technology use and a plan to reduce Amazon as part of its business. The company announced in January a "glide down" plan to cut its Amazon business in half by mid-2026, as CEO Carol Tome stated that it is "not profitable for us, nor a healthy fit for our network." Package volume from Amazon was already down 16% in the recent quarter, exceeding UPS forecasts. The company will close 73 U.S. buildings by June-end as part of this strategy and expects to implement more automation in 400 facilities. 

CNN noted that these facilities would become partly or fully automated, reducing labor dependency. The Teamsters union, representing over 300,000 UPS hourly workers, has vowed to fight any layoffs of its members, with union president Sean O'Brien warning that while corporate management downsizing wouldn't be opposed, any contract violations affecting union jobs would result in strong resistance.

These job cuts are part of a broader consolidation effort, as reported by CBS News, which highlighted that UPS currently operates in over 200 countries with approximately 490,000 employees. According to Investors UPS, the layoffs will impact slightly over 4% of its workforce and follow a previous announcement from last year that UPS would cut 12,000 positions. 

According to Brian Dykes, UPS Chief Financial Officer, "These actions will enable us to expand our U.S. Domestic operating margin and increase profitability." The company expects to save $3.5 billion this year through this consolidation plan, according to the CBS report.

The UPS job cuts come amid broader economic uncertainty caused by President Trump's trade policies, according to Reuters. About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of earnings season, according to Reuters analysis. "The world has not been faced with such enormous potential impacts to trade in more than 100 years," UPS CEO Carol Tome said during the company's earnings call, as quoted in the Reuters article. 

The economic impact is becoming increasingly evident, with Reuters noting that prominent economists including those from Goldman Sachs, Morgan Stanley, and JPMorgan have lowered their expectations for quarterly GDP to negative territory. The uncertainty has affected various industries, Reuters says, with Porsche reporting a hit of at least 100 million euros across April and May due to U.S. import tariffs; similarly, Volvo Cars announced plans to cut spending by about $1.8 billion and restructure its U.S. operations.