UPS Cutting 20,000 Jobs As Amazon Reduces Shipments

UPS has announced that it plans to cut 20,000 jobs worldwide this year in response to a decline in package volumes from Amazon, its largest customer.

UPS is contractually obligated to create 30,000 union jobs under the current national master agreement. I Photo: UPS

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The layoffs, reported by Mary Cunningham for CBS News, represent just over 4% of the company’s roughly 490,000 global employees.

The job reductions are part of a broader cost-cutting initiative following a previous round of 12,000 job cuts last year. UPS also said it will close 73 buildings by the end of June 2025, with more closures possible.

“These actions will enable us to expand our U.S. Domestic operating margin and increase profitability,” said CFO Brian Dykes during the company’s earnings call.

In a regulatory filing Tuesday, UPS stated the layoffs were in anticipation of reduced volumes from Amazon. The shipping giant reported $21.5 billion in revenue for the most recent quarter and expects to save $3.5 billion this year as part of its consolidation strategy.

Teamsters General President Sean M. O'Brien emphasized that UPS is contractually obligated to create 30,000 union jobs under the current national master agreement.

“If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way,” he said. “But if the company intends to violate our contract or target hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”