UPS to Cut 20,000 Jobs, Close 73 Facilities

UPS has announced plans to cut 20,000 jobs and close 73 facilities by June 2025, aiming to save $3.5 billion and improve profitability. The restructuring is driven by a mutual agreement with Amazon to reduce shared package volume by over 50% by 2026, as well as declining demand and macroeconomic uncertainty, including impacts from new U.S. tariffs. The company is also increasing automation and focusing on higher-margin businesses to enhance efficiency. UPS leadership stated the core delivery network will remain strong, but the Teamsters union has cautioned against any labor contract violations, noting that most job cuts are expected to affect non-Teamster positions. First-quarter earnings slightly beat expectations, supported by growth in small business and healthcare shipments, despite a year-over-year revenue decline. UPS has withdrawn its full-year guidance due to ongoing market volatility.