UPS Announces 20,000 Job Cuts in 2025 Amid Amazon Shipment Reductions

Atlanta, April 29, 2025 — Global shipping leader United Parcel Service (UPS) has announced plans to lay off 20,000 employees in 2025 as part of a sweeping cost-cutting and restructuring plan, aimed at improving profitability and efficiency. The decision follows a strategic move to reduce delivery volumes from Amazon, its largest client.

The move, which impacts just over 4% of UPS’s global workforce of approximately 490,000, comes on top of the 12,000 layoffs previously announced by the company in 2024. UPS aims to consolidate its operations further by closing 73 buildings by June 2025, with more closures possibly on the horizon.

Amazon Volume Reduction Tied to Restructuring Plan

UPS confirmed in a regulatory filing on Tuesday that the layoffs are directly connected to its plan to reduce the volume of packages it handles for Amazon. Earlier this year, the company had announced an agreement to cut Amazon package deliveries by over 50% in the second half of 2026.

“The reduction of Amazon package volume is a strategic decision to focus on high-revenue shipments and increase operating margins,” said CFO Brian Dykes during the company’s earnings call. “These actions are expected to help us save $3.5 billion in 2025 alone.”

UPS insists that the move to reduce reliance on Amazon is voluntary and part of a broader strategy to enhance profitability. Amazon, in response, stated it had offered UPS increased volumes, but respected their operational decision to decline.

Union Concerns and Contractual Obligations

The layoff announcement has sparked concerns from labor unions, particularly the Teamsters, which represent a large portion of UPS’s workforce. Sean M. O’Brien, president of the Teamsters, stated:

“If UPS wants to continue downsizing corporate management, the Teamsters won’t stand in its way. But if the company tries to cut into good-paying union jobs, we’re prepared for a fight.”

UPS is contractually obligated to create 30,000 Teamster jobs under its current national master agreement.

UPS Faces Broader Trade Risks

Beyond workforce reductions, UPS has expressed concerns over shifting global trade policies. With rising tariffs and continued tensions between the U.S. and China, the company warned that its operations could be significantly impacted.

CEO Carol Tomé highlighted that 11% of UPS’s international revenue in 2024 came from China-to-U.S. trade lanes, which remain the company’s most profitable.

To help customers navigate new import regulations, UPS has introduced a new feature, UPS Global Checkout, which displays upfront tariff and duty costs to online shoppers.

Stock Market Reaction and Industry Competition

Following the announcement, UPS shares dropped 0.6% to $96.61 during Tuesday’s afternoon trading. The company is also facing increasing competition from rivals like FedEx and Amazon’s own logistics network, in addition to cost-cutting pressure as e-commerce dynamics shift globally.

Meanwhile, Amazon has come under fire over its own response to tariffs. A report suggesting Amazon would display tariff-related costs on product listings was denied by the company, stating it was only a considered idea, not an approved initiative.

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