United Parcel Service (UPS) plans to close 164 operations and 73 buildings by June, reducing its workforce by 20,000 positions by the end of the year. This is part of the company’s largest network reconfiguration in history, aimed at decreasing deliveries for Amazon by over 50% by June 2026.
The move aims to optimize UPS’ capacity and enhance productivity through automation, while expanding its US domestic operating margin. Approximately two-thirds of the locations are on the East Coast, including areas such as Harrisburg.
In a statement, Karen Tomaszewski Hill said, “While our building footprint is changing, our record of reliable pickup and delivery is not.” UPS remains committed to providing industry-leading service to customers in over 200 countries and territories worldwide.
The reconfiguration is part of a strategic initiative aimed at reducing labor dependency and improving structural operating margins. This move comes after Amazon’s contract came up for reassessment, with UPS deciding volume reduction was the best alternative. The company reported $21.5 billion in revenue during the first quarter, a 0.7% decrease from the same period last year.
Source: https://www.pennlive.com/business/2025/04/large-us-company-to-close-73-buildings-cut-20000-jobs.html