UPS is cutting 20,000 jobs this year as part of its efforts to reduce costs and boost profits. The move comes as the company faces reduced shipping volumes due to President Trump’s tariffs, which have prompted some customers to ship fewer goods.
The job cuts are in addition to 12,000 positions that UPS cut last year. With over 490,000 employees, many of whom belong to the Teamsters union, the cuts will impact operational staff, including those who sort and deliver packages.
UPS aims to reduce costs by $3.5 billion this year, with most of that coming from job cuts and building closures. The company also plans to slash in half its deliveries for Amazon, its largest customer, by mid-2024.
The Teamsters union has agreed to a five-year labor contract that includes wages significantly higher than those at nonunion delivery companies. However, the union’s general president stated that UPS will not be able to shed corporate management positions without facing opposition from the union.
UPS CEO Carol Tomé attributed President Trump’s trade policies as particularly debilitating for small and midsize businesses. The company expects its China-to-United States business to decline due to tariffs, but noted it has a history of adapting to shifts in supply chains.
The job cuts are part of UPS’s efforts to improve profit margins and shed unprofitable parts of its business.
Source: https://www.nytimes.com/2025/04/29/business/ups-layoffs-trump-tariffs.html