• UPS plans to cut 20,000 jobs in response to reduced Amazon shipments.
• The company will close 73 facilities by June 2025.
• These changes follow a previous agreement to decrease Amazon delivery volume by over 50%.
• UPS CEO stated the restructuring aims to enhance efficiency and profitability.
• UPS currently employs around 490,000 individuals, indicating a minor workforce reduction.

United Parcel Service (UPS) announced on Tuesday that it intends to lay off 20,000 employees as part of a significant cost-cutting initiative stemming from declining demand for its services from Amazon, its largest customer. The job cuts will involve the closure of 73 facilities, with further reviews anticipated for additional shutdowns, as reported by CBS News, SFGate, India Times, and India Times.

CEO Carol Tomé emphasized that these measures come amid a broader reevaluation of UPS’s operations, stating, “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier.” She noted that the agreement made with Amazon to reduce delivery volumes by over 50% by the second half of 2026 has influenced this decision. The partnership, lasting nearly three decades, prompted a reassessment due to profitability concerns, with Tomé declaring, “Amazon is our largest customer, but it’s not our most profitable customer,” according to SFGate and India Times.

The planned job reductions, which represent slightly over 4% of UPS's total workforce of approximately 490,000, reflect a shifting landscape in logistics, as the company grapples with increased economic uncertainty. The company is also evaluating its full-year financial outlook in light of these changes, illustrating wider implications for its operational profitability, as noted in reports from CBS News and India Times.