United Parcel Service (UPS) announced Tuesday that it plans to slash 20,000 jobs this year due to economic uncertainty and a potential pullback from Amazon, its largest customer.
The company also plans to close 73 facilities by the end of June.
UPS CEO Carol Tomé said the cutbacks will help the shipping giant adapt to the impact of President Trump’s sweeping tariffs, which have upended the global economy.
“The world has not been faced with such enormous potential impacts to trade in more than 100 years,” Tomé said on the company’s earnings call. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
UPS expects to save $3.5 billion in 2025 through these cuts. The company employs about 490,000 workers, according to FactSet.
The announcement was made alongside UPS’s first-quarter 2025 earnings report, which showed a slight revenue dip to $21.5 billion, down 0.7% from the same period last year. However, UPS’s adjusted operating profit increased by 0.9% to $1.7 billion.
UPS is the first major U.S. company to respond to slowing trade through widespread layoffs. It also declined to provide any update to its full-year guidance.
“Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook,” UPS said.
In January, UPS announced that it had reached a deal with Amazon, its biggest customer, to lower its volume by more than 50% by the second half of 2026.
The Associated Press contributed to this report.
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