UPS layoffs: 20,000 jobs cut, 73 locations to close as company cites less Amazon business amid tariff uncertainty

United Parcel Service (UPS) said on Tuesday it will slash 20,000 jobs and close more than 70 facilities to lower costs as it braces for less Amazon shipments, due to global economic uncertainty and changing consumer habits.

The package delivery company said in addition to the job cuts, it would shut at least 73 owned and leased locations this year by the end of June, perhaps more, and expects to save $3.5 billion in 2025 from the cost-cutting measures.

UPS’ first-quarter revenue fell slightly to $21.5 billion, but the company still beat Wall Street earnings expectations of $21.05 billion, according to data firm LSEG, per Reuters.

Shares of the company (NYSE:UPS) rose nearly 2% before the market opened on Tuesday. The stock was down less than 1% in midday trading at the time of this writing.

It’s worth noting that news of UPS decreasing its Amazon shipments follows similar earnings guidance from last quarter. In January, the company announced a deal with its largest customer to lower its volume by more than 50% by the second half of 2026. (In 2024, Amazon.com accounted for 11.8% of UPS’ overall revenue, according to CNBC.)

“As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to
a changing trade environment,” UPS CEO Carol Tomé said in a statement, likely alluding to the current economic uncertainty and potential for slowing trade as a result of the Trump Administration’s sweeping tariffs.

“The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,” Tomé added. “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier.”

Like many other companies who have declined to provide a full financial forecast during recent earnings calls, due to the rapidly changing economic landscape, UPS did not provide an update to its full-year outlook on its earnings call.