The package delivery behemoth UPS announced on Tuesday that it would lay off 20,000 employees globally by 2025 as a result of a sharp decline in sales for its biggest client, Amazon.
In an earnings news statement, UPS stated that it plans to “close 73 leased and owned buildings by the end of June 2025 and reduce our operational workforce by approximately 20,000 positions during 2025.”
In response to a “changing trade environment,” the shipping company, which employed around 490,000 people at the end of 2024, is acting to “reconfigure” its operations, according to CEO Carol Tome.
“The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,” Tome said.
Profits were $1.2 billion, up 7.2 percent from the year-ago level, while revenues were down 0.7 percent at $21.5 billion.
In January, UPS announced it reached an agreement to reduce its Amazon volumes by more than 50 percent by the second half of 2026. Tome has said the shift will enable it to phase out operations that are not profitable for the shipping company.
UPS took a step back from its January forecast, saying it would not update the figures given macroeconomic uncertainty. Shares of UPS rose 1.0 percent in pre-market trading.
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