Image Courtesy of UPS
UPS Confirms Closure of 3 Pennsylvania Facilities as Part of Network Reconfiguration
May 9, 2025
UPS has confirmed that it has closed three of its shipping facilities in Pennsylvania, claiming that doing so is part of its efforts to streamline its operations for the future.
ABC27 in Harrisburg, Pennsylvania, reports that by the end of 2025, the corporation plans to reduce its personnel by about 20,000 due to a new modernization effort that it started building on. Plans for network reconfiguration were part of this endeavor, which the company dubbed the “network of the future.”
The three locations in Pennsylvania that will be closed due to this network reconfiguration are:
- 1821 South 19th St., Harrisburg
- 2006 River Road, New Kensington
- 2129 Rockdale Lane, Stroudsburg
This reconfiguration aims to maximize UPS’s capacity by adding more automation and updating its network of distribution centers across the country.
Additionally, UPS stated that by June 2025, it intends to close 73 of its owned and leased properties nationwide.
“As announced on our Q1 earnings call, we are executing the largest network reconfiguration in UPS history,” the company said in a statement. “This strategic initiative will optimize the capacity of our network to align with expected volume levels and enhance productivity through additional automation. The reconfiguration will impact positions, and we are committed to supporting our employees throughout this process.”
The statement continued: “While our building footprint is changing, our record of reliable pickup and delivery is not. We remain committed to providing industry-leading service to customers in more than 200 countries and territories around the world.”
Are These UPS Closures Due to the Trump Tariffs?
The building closures and employment cutbacks are part of a bigger plan to reorganize the package delivery company’s network and decrease expenses overall. UPS anticipates spending between $400 million and $600 million in 2025, which would be a record high for the business.
“The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS,” said CEO Carol Tomé in a press release.
Many businesses are delaying expenditure while concerns about foreign trade and tariffs mount. For delivery businesses, less investment translates into less volume.
UPS made a profit in the most recent quarter despite significantly lower revenue. Compared to the $1.11 billion it made in the same quarter last year, net income increased slightly to $1.19 billion.
UPS chose to refrain from making any new projections regarding its full-year estimate for 2025, citing “macro-economic uncertainty.” The package company predicted earlier this year that its full-year sales would be around $89 billion.
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