UPS cutting 20,000 jobs amid reduction in Amazon shipments [View all]
Source: CBS News
Updated on: April 29, 2025 / 11:43 AM EDT
UPS on Tuesday announced it is planning to cut 20,000 jobs this year, part of a cost-cutting effort that's linked to fewer deliveries from Amazon, its biggest customer.
The shipping company, which operates in over 200 countries, currently has around 490,000 employees. The layoffs will impact slightly over 4% of its workforce. This follows an announcement from UPS last year that it would cut 12,000 positions.
The move is part of the company's plan to consolidate UPS's facilities and workforce. Along with the job cuts, the company announced it will also close 73 of its buildings by the end of June 2025 and said that it may target additional buildings for closure. "These actions will enable us to expand our U.S. Domestic operating margin and increase profitability," Brian Dykes, the chief financial officer of UPS said during an earnings call on Tuesday morning.
In a Tuesday regulatory filing, UPS said the cuts are in "connection with our anticipation of lower volumes from our largest customer." The company, which announced $21.5 billion in revenue for this past quarter, expects to save $3.5 billion this year as a result of its consolidation plan.
Read more: https://www.cbsnews.com/news/ups-job-cuts-layoffs-amazon-shipments-stock-price/
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