UPS plans to cut approximately 4% of its global workforce, around 20,000 jobs, due to increased technology usage and a previously announced plan to reduce its Amazon business. The company cited the need to restructure its network, stating that most of the lost Amazon business is “not profitable for us” and “not a healthy fit for our network.”
The job cuts come as UPS continues to implement its “glide down” plan, which aims to cut its Amazon business in half by 2026. The company has already seen a 16% decline in package volume from Amazon and plans to close 73 US buildings by the end of June.
UPS also announced plans to increase automation in its facilities, with 400 sites becoming partly or fully automated. CEO Carol Tome said that this reconfiguration will help reduce labor dependency.
While UPS acknowledged the impact of President Trump’s tariffs on imports, including a 145% tariff on Chinese goods, Tome expressed uncertainty about their ultimate effects. Some customers have expressed concerns about exiting the China market, but many remain hopeful for a tariff roll-back.
As a result, UPS forecasted its revenue to fall in the second quarter compared to last year, despite maintaining full-year guidance. The company warned that it may adjust its forecast in the future due to ongoing uncertainty in the US consumer sentiment and tariffs’ impact on the economy.
Source: https://edition.cnn.com/2025/04/29/business/ups-job-cuts/index.html