Atlanta, Georgia — United Parcel Service (UPS) is set to implement significant staff reductions in 2025, planning to lay off approximately 20,000 workers as part of a broader strategy aimed at cost-cutting and boosting profitability. The announcement came during the company’s first-quarter earnings report, where it reported revenues of $21.5 billion, a slight decline from $21.7 billion in the same quarter last year.
UPS also revealed intentions to close 73 of its leased and owned facilities by the end of June. Chief Executive Officer Carol Tomé emphasized that these restructuring measures are crucial in adapting to the evolving landscape of global trade policies and the effects of increased tariffs. “The actions we are taking to reconfigure our network and reduce costs are timely,” Tomé stated. “Despite uncertainties in the macro environment, these steps will strengthen our operations.”
With a workforce nearing 490,000, including around 330,000 Teamsters union members, the upcoming job cuts follow last year’s reduction of 12,000 positions. The latest layoffs will affect the operational workforce involved in package sorting, transport, and delivery, signaling a strategic pivot as the company adapts to changing market conditions.
Industry analysts noted that the job cuts are indicative of broader challenges facing UPS, including the impact of Donald Trump’s trade tariffs, which have reportedly led some customers to reconsider their shipping volumes. The company noted that “current macroeconomic uncertainty” has hampered its ability to revise earlier forecasts for revenue and the annual outlook.
In addition to workforce reductions, UPS plans to further consolidate its facilities and workforce while initiating a comprehensive redesign of its operational processes. This restructuring is partially driven by anticipated lower shipping volumes from its primary customer, Amazon, which accounted for nearly 12% of UPS’s total revenue in 2024.
The Teamsters union responded strongly to the layoffs announced in the earnings report, reiterating the company’s obligation under their current contract to create 30,000 jobs for union members. Sean O’Brien, the union’s general president, warned against any potential violations of their agreement. “If UPS decides to pursue corporate downsizing at the expense of our jobs, they will face strong opposition,” O’Brien stated.
As UPS navigates these turbulent waters, the company is tasked with balancing economic pressures while maintaining its commitment to employees and service standards. Stakeholders and employees alike will be watching closely as the situation unfolds in the coming months.