UPS Slashing 20,000 Jobs To Cut Costs and Streamline Operations

United Parcel Service is cutting 20,000 jobs as it adapts to current and somewhat unclear economic conditions. UPS will also shutter at least 73 leased and owned buildings by the end of the year, leaving open the possibility of closing even more.

The job cuts and building closures are part of a larger strategy to restructure the package delivery company’s network and reduce costs across the organization. In 2025, UPS expects expenditures in the range of $400 million to $600 million, a record high for the company.

“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.

As worries about tariffs and international trade pile up, many companies are taking a wait-and-see attitude on spending. Less spending means lower volume for delivery companies.

“The world has not been faced with such enormous potential impacts to trade in more than 100 years,” explained Tomé on an earnings call, per Reuters.

UPS Beats Wall Street Projections

Coming in slightly higher than analysts’ predictions of $21.1 billion, UPS reported $21.5 billion in revenue during the first quarter of 2025.  For the same three-month period last year, the company’s revenue was $21.7 billion.

Even with revenue slightly less, UPS did turn a profit in the most recent quarter. Net income reached $1.19 billion, a small jump compared to the $1.11 billion it earned in the same quarter last year.

As far as the full-year outlook for 2025, UPS decided to withhold any new predictions, blaming “macro-economic uncertainty.” Earlier this year, the parcel company estimated full-year revenue would reach about $89 billion.

In January, UPS announced it would be cutting the volume of Amazon deliveries by half. According to the delivery company, Amazon will remain a sizable partner, but some resources and assets will need to be rearranged to provide better service in more profitable areas.

UPS is also likely facing a significant downturn in business associated with Chinese discount retailers Temu and SHEIN. Both companies have recently raised prices in response to tariffs imposed on goods imported into the U.S. from China, which could lead to fewer customers placing orders.