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| Economy |
| UPS cutting 20K jobs due to fewer Amazon shipments |
| 2025-04-30 |
| [FoxBusinessNews] UPS and Amazon reached a deal earlier this year to reduce Amazon's volume of UPS shipments United Parcel Service (UPS) said Tuesday that it will cut about 20,000 jobs and shutter 73 of its facilities as the logistics giant cuts costs amid a move to reduce shipping volumes from its largest customer, Amazon, and broader economic uncertainty. The move, which amounts to a cut of about 4% of the company's workforce, makes UPS the first big American company to move forward with large-scale layoffs in the face of slowing trade due to the Trump administration's tariffs. A slowdown in global trade is likely to reduce the need for shipping services between companies, potentially hurting parcel delivery firms. "The world has not been faced with such enormous potential impacts to trade in more than 100 years," CEO Carol Tome said during the company's earnings call. It also comes after UPS announced in January that it reached an agreement with its largest customer, Amazon, to cut its volume by 50% by the second half of 2026. Amazon accounted for 11.8% of UPS' overall revenue in 2024. "The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," Tome said. Last year, UPS said it would cut its workforce by 12,000 jobs, and added that it expects expenses of between $400 million and $600 million related to separation benefits and lease-related cuts in 2025. UPS also faces a sharp downturn in volume from China-linked bargain e-commerce sellers Temu and Shein after the U.S. moved to collect tariffs on goods that were previously duty-free under a threshold of $800 per individual sale. To help keep its customers updated about tariffs and trade policy changes, UPS launched a website that tracks various developments in negotiations as well as offers the ability to connect with experts and explore options to manage tariff costs. UPS is also offering a new UPS Global Checkout service that shows the cost of customs fees and duties on international purchases at checkout. Related: UPS 04/15/2025 Pa. arson suspect was out on bail when he allegedly firebombed Gov. Josh Shapiro’s mansion UPS 03/06/2025 Islamic State the deadliest terror group in 2024 as big four expands UPS 02/23/2025 West Bank terror crackdown sees largest displacement of Palestinians since 1967 |
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