UPS to Slash 20,000 Jobs and Close Facilities: What This Means for Amazon Shipments and the Shipping Industry

UPS plans to cut around 20,000 jobs and close over 70 facilities as it reduces the number of Amazon shipments it manages. The announcement came on Tuesday, with UPS indicating these cuts could happen this year. They expect to close 73 buildings by the end of June, but further closures may be on the horizon as they assess their operations.

CEO Carol Tomé stated, “The actions we are taking to reconfigure our network and reduce costs are timely. While the macro environment is uncertain, these steps will help us emerge as a stronger, more agile UPS.”

In January, UPS and Amazon agreed to reduce UPS’s shipment volume by more than 50% by mid-2026. Tomé noted that while Amazon is UPS’s largest customer, it isn’t the most profitable. The contract review prompted a reassessment of their relationship, leading to the decision to cut back.

UPS employs about 490,000 workers, according to FactSet. In its recent financial results, the company reported a profit of $1.19 billion, or $1.40 per share, for the quarter ending March 31. Stripping out certain factors, earnings came in at $1.49 per share, surpassing the expectations of analysts who had forecasted $1.44.

Revenue totaled $21.55 billion, exceeding Wall Street’s prediction of $21.06 billion. Given the current economic uncertainties, UPS has not updated its full-year outlook but previously estimated revenue of around $89 billion for 2025. In response to these developments, UPS shares saw a slight increase in morning trading.

Recent trends show a broader impact of e-commerce on delivery services. As online shopping rapidly grows, companies are adjusting their strategies. UPS’s shift reflects larger industry movements where profitability is prioritized over volume. Industry experts suggest that this trend might reshape how delivery services operate, likely leading to more partnerships focusing on profitability.

As delivery services evolve, understanding these changes can offer insights into the future of logistics. For more on UPS’s adjustments and industry trends, you can check the latest reports from the [U.S. Bureau of Labor Statistics](https://www.bls.gov) or explore insights from [Forbes](https://www.forbes.com) regarding shifts in the delivery sector.

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Amazon.com, Inc., Atlanta, GA State Wire, Business, United Parcel Service, Inc., Jobs and careers, Carol Tom, Transportation and shipping