UPS Cuts 20,000 Jobs, Blames Tariffs and Amazon

UPS plans to cut approximately 20,000 jobs—about 4% of its workforce—and close 73 facilities by June 2025 to save $3.5 billion, following earlier staff reductions. The restructuring is driven by declining demand, macroeconomic uncertainty, and the company's decision to halve Amazon deliveries, which had represented nearly 12% of revenue but were considered low-margin. President Trump's recent 145% tariffs on Chinese imports have further reduced consumer demand and shipping volumes for both Amazon and Chinese e-commerce companies served by UPS. The company is also increasing automation as part of its cost-cutting strategy and is focusing on higher-margin business. UPS reported slightly lower first-quarter revenues but still beat Wall Street expectations and has withdrawn its full-year guidance due to ongoing volatility. The job cuts disproportionately affect Teamsters union members, raising concerns about broader labor market impacts.