The United Parcel Service (UPS) is expected to cut approximately 20,000 jobs in 2025 as part of a larger plan to cut costs and increase profits, citing “changes in global trade policy and new or tariff increase.”
UPS announced its layoffs on Tuesday in its first quarter revenue report. The parcel delivery service said it had generated $21.5 billion in consolidated revenues compared to $21.7 billion almost simultaneously a year ago. Additionally, the company said it would close 73 leasings and owned buildings by the end of June this year.
“The actions we employ to restructure our network and reduce costs across our business cannot be timely,” UPS CEO Caroltome said in a statement.
“The macro environment may be uncertain, but as we do, we are showing up as stronger and more agile ups.”
The service currently has around 490,000 employees, of which approximately 330,000 are members of Teamster Union. Last year, UPS said it cut its workforce by 12,000 jobs. In a report Tuesday, the company said it plans to plan for those “workforces operating” these latest cuts, or people who are directly involved in package sorting, transporting and delivering.
Donald Trump’s drastic tariffs, like many goods, discourage some UPS customers from being shipped, thus cutting jobs and Americans expecting a continuing impact on the US and global trade.
The company is citing “current macroeconomic uncertainty” to prevent it from providing revenue and annual outlook for previously issued forecasts.
The report also said UPS plans to expand its facility and workforce integration and implement an “end-to-end process redesign” due to the expected “lower volume” from the company’s biggest customer, Amazon. According to CNBC, the retail giant owned by Bezos accounted for 11.8% of UPS’ overall revenue in 2024.
Teamsters Union responded to its latest revenue report by reminding UPS that it is contractually mandatory to create 30,000 Teamster jobs under its current contract.
“If UPS wants to continue reducing its corporate management, Teamsters will not get in the way,” Teamster’s general president Sean O’Brien said in a statement. “But if the company intends to violate our contract or pursues the work of a teamstar with a fierce battle, a good payout, UPS will be in the hell of battle.”
