UPS Set To Make 20,000 Cuts
On Tuesday UPS announced that they are planning to cut 20,000 jobs in 2025. This is apart of a cost-cutting effort that’s linked to the company’s decision to deliver fewer packages from Amazon. Amazon is UPS biggest customer.
The shipping company operates in over 200 countries and has 490,000 employees. The layoffs will impact slightly over 4% of its workforce. This also follows an announcement UPS made last year that said they were cutting 12,000 positions. The cut is a part of the company’s plan to consolidate UPS’s facilities and workforce.
Along with the cuts, the company also announced it will be closing 73 of its buildings by the end of June 2025. They also 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 their 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 the past quarter, expects to save $3.5 billion this year as a result of its consolidation plan.
UPS delivers millions of packages worldwide each year. Last year, the company delivered an average of 22.4 million parcels per day and 5.7 billion for the entire year. UPS shares slipped $1.13 cents in early trading.
UPS is keeping customers abreast of tariff developments on its website. It also has introduced a new tool called UPS Global Checkout that shows online shoppers the upfront costs they will have to pay in duties, fees and taxes.
