UPS is set to slash almost 20,000 jobs and shut down several facilities across its network as the delivery giant undergoes a major shake-up in response to falling demand from its largest customer, Amazon.
The Atlanta-based company said on Tuesday that it plans to carry out the job cuts this year, and close 73 leased or owned buildings by the end of June. More closures may follow as the company continues to review its operations.
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” CEO Carol Tomé said in a statement on Tuesday. "The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
The overhaul followed a January announcement that UPS and Amazon had agreed to slash the volume of packages delivered by UPS by more than 50% by the second half of 2026. The two companies have been partners for nearly three decades, but Tomé made it clear during the firm’s fourth-quarter earnings call that the deal was no longer sustainable on current terms.
“Amazon is our largest customer but it’s not our most profitable customer,” she said at the time. “Its margin is very dilutive to the US domestic business.
UPS currently employs about 490,000 workers.
The company also released its first-quarter financial results on Tuesday, reporting net income of $1.19 billion, or $1.40 per share, for the three months ending 31 March. Adjusted earnings stood at $1.49 per share, topping analysts’ expectations of $1.44, according to Zacks Investment Research.
Revenue also came in ahead of forecasts, reaching $21.55 billion compared to the $21.06 billion anticipated by Wall Street.
However, UPS said it would not be updating its full-year forecast amid ongoing macroeconomic uncertainty. The company previously projected 2025 revenue of about $89 billion.
UPS shares saw a modest rise in morning trading following the announcement.
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