United Parcel Service (UPS) plans to cut approximately 20,000 jobs by the end of 2025 as part of its cost-cutting measures. The company cited changes in global trade policy and new tariffs as reasons for the layoffs. UPS announced the job cuts on Tuesday during its first-quarter earnings report.
The parcel delivery service reported consolidated revenues of $21.5 billion, slightly lower than the previous year’s $21.7 billion. Additionally, UPS plans to shutter 73 leased and owned buildings by the end of June.
“We are taking actions to reconfigure our network and reduce cost across our business,” said Carol Tomé, UPS chief executive officer. “With these actions, we will emerge as an even stronger and more nimble UPS.”
The company currently has around 490,000 employees, with approximately 330,000 belonging to the Teamsters union. Last year, UPS reduced its workforce by 12,000 jobs.
The job cuts come amid uncertainty in global trade due to Donald Trump’s tariffs. UPS customers are being discouraged from shipping goods, and Americans anticipate a continued impact on US and global trade.
UPS plans to expand its facility consolidations and implement an “end-to-end process redesign” due to expected lower volumes from its largest customer, Amazon. The Bezos-owned retail giant accounted for 11.8% of overall revenue in 2024.
The Teamsters union has criticized UPS for failing to create the required 30,000 new jobs under the current agreement. “If UPS wants to continue downsizing corporate management, we won’t stand in its way,” said Sean O’Brien, Teamsters general president. However, he warned that if the company attempts to go after hard-fought, good-paying Teamsters jobs, it will face resistance from the union.
Source: https://www.theguardian.com/us-news/2025/apr/30/ups-layoffs-trump-tariffs