UPS to Slash 20,000 Jobs, Close 73 Facilities as It Reduces Amazon Shipments

JB Quinnon
Apr 30
2 min read

Atlanta-based shipping giant United Parcel Service (UPS) announced sweeping cost-cutting measures this week, revealing plans to eliminate approximately jobs and close 73 of its leased and owned buildings by the end of June. The move comes as part of the company’s strategic shift away from its long-standing reliance on Amazon, a partnership that has become less economically viable in recent years.

A Strategic Pivot Away from Amazon

UPS CEO Carol Tomé framed the layoffs and closures as part of a larger network reconfiguration designed to improve profitability and operational efficiency. “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” Tomé stated in a press release on Tuesday. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.” [Source: 11Alive News]

In January 2025, UPS and Amazon agreed to significantly reduce the volume of packages handled through their partnership—cutting it by over 50% by the second half of 2026. While Amazon has long been UPS’s largest client, it has not been its most profitable. “Amazon is our largest customer but it’s not our most profitable customer,” Tomé said during a January earnings call. “Its margin is very dilutive to the U.S. domestic business.” [Source: Associated Press]

Financial Outlook and Performance

Despite the layoffs, UPS posted better-than-expected financial results for the first quarter of 2025. The company earned $1.49 per share excluding certain items, slightly above analyst expectations of $1.44 per share. Total revenue reached $21.55 billion, surpassing Wall Street's forecast of $21.06 billion. [Source: Zacks]

UPS has reaffirmed its full-year revenue forecast of approximately $89 billion but has declined to offer further updates due to ongoing macroeconomic uncertainty.

Broader Impacts

The downsizing represents about 4% of UPS’s 490,000-person workforce, a significant blow not only to workers but also to the communities where these facilities are located. The specific locations of the 73 buildings slated for closure have not yet been disclosed, and more cuts may follow pending further review of the company’s logistics network.

This announcement adds to a broader trend of logistics and e-commerce firms adjusting to a post-pandemic world where demand has softened and high-volume, low-margin contracts like Amazon’s are being reconsidered.

Conclusion

UPS's latest move highlights the increasing need for legacy companies to make difficult decisions in the face of economic shifts, automation, and evolving business relationships. As it distances itself from Amazon, UPS is placing a strategic bet on leaner operations and higher-margin clients—one that could reshape the delivery landscape in the years to come.

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