UPS to lay off 20,000 workers and close 73 facilities as Amazon partnership shrinks
UPS to lay off 20,000 and close 73 facilities as Amazon partnership shrinks (Illustrative photo: Getty Images)
UPS is launching large-scale layoffs and shutting down logistics buildings in the coming months, according to The Washington Post.
UPS, the world's largest package delivery company, announced it will cut approximately 20,000 jobs in 2025 and close 73 facilities over the next two months.
The move comes as the company scales back its cooperation with Amazon — its biggest customer — and braces for broader economic uncertainty.
In its Q1 earnings report, UPS stated that the cuts are expected to save the company up to $3.5 billion this year.
"The actions we are taking to reconfigure our network and reduce costs across our business could not be timelier," said CEO Carol Tomé. "The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS."
The decision to reduce Amazon volumes was first announced in January, with plans to cut the volume by over 50% by late 2026.
According to Tomé, this move will "put us further down the path to becoming a more profitable, agile and differentiated UPS."
Amazon responded with support for the decision: "Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision," Amazon spokesperson Kelly Nantel said at the time.
Tensions with unions and external economic pressures
The announcement has sparked concerns from the Teamsters union, which represents a large portion of UPS workers.
Teamsters President Sean O'Brien reminded that UPS is contractually obligated to create 30,000 union jobs.
"If UPS wants to continue to downsize corporate management, the Teamsters won't stand in its way," he said. "But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight."
UPS told Reuters it will honor its contract with the union. The company also said it will continue monitoring shipment volumes and may identify additional buildings for closure.
Further strain comes from US trade policy. Tomé warned that the Trump administration's new 145% tariff on Chinese imports, set to take effect May 2, is creating massive uncertainty for many of UPS's small- and medium-sized customers.
"The world hasn't been faced with such enormous potential impacts to trade in more than one hundred years," she stated.
Amid this turmoil, Chinese Amazon sellers are already preparing to raise prices or exit the US market entirely due to the record-high 125% tariffs. This growing trade war is shaking the supply chain — impacting both global sellers and logistics giants like UPS.
