UPS Plans Workforce Reductions and Facility Closures
United Parcel Service (UPS) is set to trim its workforce by approximately 20,000 by the end of 2025, citing factors such as new tariffs and evolving economic conditions in the U.S. and globally. The announcement came on April 29 as UPS disclosed its first-quarter earnings report, revealing consolidated revenues of $21.5 billion, slightly down from the previous year’s $21.7 billion. In addition to the job cuts, UPS will be shutting down about 73 facilities by the end of June.
The move to streamline operations aligns with the uncertainties surrounding U.S. trade policies, particularly in light of President Donald Trump’s tariffs, which are prompting companies to make cost-saving adjustments. With about 490,000 employees worldwide in 2024, including around 330,000 Teamsters-represented roles in the U.S., UPS is realigning its network and operations to enhance efficiency and resilience.
“We are taking strategic actions to adapt our network and drive efficiencies across our operations,” stated Carol Tomé, UPS’s CEO. “Despite the challenging macroeconomic landscape, these measures position us to emerge stronger and more agile.”
As part of its restructuring efforts, UPS is fast-tracking plans to reduce its delivery volume for Amazon by more than 50% by June 2026. The company is also undergoing its largest-ever network reconfiguration to enhance operational efficiency. The decision comes amid reports of Amazon considering listing tariff costs alongside product prices, sparking tensions within the industry.
Alongside workforce reductions, UPS plans to close 73 leased and owned buildings by mid-2025, focusing on sites related to its U.S. Ground operations. The building closures and job cuts are estimated to yield cost savings of $3.5 billion in 2025, forming part of UPS’s broader consolidation and efficiency initiative, slated to conclude in 2027.
Recognizing the impact on employees and their families, UPS is committed to supporting affected staff through potential reassignments and assistance programs. “Our employees are a top priority, and we aim to minimize disruptions as we navigate these changes together,” stated Karen Tomaszewski Hill, a UPS spokesperson.
“Throughout the process, employees may be impacted to receive support.” According to CNBC, UPS, the largest package delivery company in the world, projected a yearly revenue of $89 billion in January. In January 2024, UPS announced the layoff of approximately 12,000 employees worldwide as part of efforts to realign resources for the year. During an earnings call, Tomé stated that these cuts would result in savings of nearly $1 billion for the company, following a significant decline in revenue. Tomé expressed gratitude to UPS employees for achieving the best on-time performance among carriers for the sixth consecutive year, despite the challenges faced in 2023. The company emphasized its commitment to controlling aspects within its power, staying on course, and fortifying its foundation for future growth. This article was updated to include the latest developments. Originally published on USA TODAY: UPS to cut 20,000 jobs and shut down 73 facilities in 2025.
