Package delivery giant UPS said Tuesday it plans to cut 20,000 positions worldwide in 2025 following a significant drop in business for Amazon, its largest customer.
UPS expects to "reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025," the company said in an earnings press release.
The shipping company, which had around 490,000 employees at the end of 2024, is taking the actions to "reconfigure" its operations in reaction to a "changing trade environment," said Chief Executive 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.
UPS expects to "reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025," the company said in an earnings press release.
The shipping company, which had around 490,000 employees at the end of 2024, is taking the actions to "reconfigure" its operations in reaction to a "changing trade environment," said Chief Executive 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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