UPS announced plans to cut 20,000 jobs, representing about 4% of its workforce, as part of a cost-reduction strategy linked to decreased package deliveries from Amazon, its largest customer. The decision follows a prior reduction of 12,000 positions and includes closing 73 facilities by mid-2025. UPS aims to improve profitability, projecting $3.5 billion in savings from the consolidation. While Amazon maintains a strong relationship with UPS, the shipping giant anticipates lower volumes from Amazon moving forward. Additionally, UPS faces risks from global trade policy changes, particularly due to tariffs introduced by the Trump administration.
