April 30, 2025 — United Parcel Service (UPS) announced plans to lay off approximately 20,000 employees and close 73 facilities across the U.S. by June 2025. This decision comes as the company adjusts to a significant reduction in package volumes from its largest customer, Amazon, and navigates broader economic challenges.
UPS’s Chief Financial Officer, Brian Dykes, stated that the company is undertaking the largest network reconfiguration in its history, which includes the closure of 164 operational facilities, with 73 buildings set to shut down by the end of June. The layoffs, representing about 4% of UPS’s global workforce of approximately 490,000 employees, are part of a strategy to align operations with the anticipated more than 50% decrease in Amazon package volume by June 2026.
The reduction in Amazon shipments is a result of a renegotiated agreement between the two companies, aiming to focus on more profitable deliveries. UPS reported that the volume from Amazon, which accounted for 11.8% of its overall revenue in 2024, was largely unprofitable, involving lower-margin shipments from fulfillment centers.
In addition to the changes in its relationship with Amazon, UPS cited global economic instability and trade tariffs as contributing factors to the restructuring. CEO Carol Tomé emphasized the need for UPS to become more agile and resilient in the face of these challenges.
The International Brotherhood of Teamsters, representing a significant portion of UPS’s workforce, responded to the announcement by stating that UPS is obligated to create 30,000 Teamster jobs under the current national agreement. They warned that any attempt by the company to violate the contract would be met with strong opposition.
This move by UPS reflects broader trends in the logistics and e-commerce industries, where companies are reevaluating operations in response to shifting customer relationships and economic pressures.
