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| UPS announces 20,000 job cuts, nearly 4% of its global workforce |
UPS to Slash 20,000 Jobs as Automation Rises and Amazon Partnership Shrinks
DECK
Global courier giant embarks on major restructuring, citing technology and strategic realignment—not tariffs—as the drivers behind its decision.
KEY FACTS
What: UPS announces 20,000 job cuts, nearly 4% of its global workforce
Why: Shift toward automation and reduced reliance on Amazon business
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Where: 73 U.S. facilities will close by end of June
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When: Job cuts will take place throughout 2025
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Impact: Union vows to resist any attempt to cut member jobs
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Tariffs: UPS monitors impact of Trump’s China tariffs but says layoffs are unrelated
SITUATION SNAPSHOT
Inside UPS’s sprawling network of logistics hubs, machines are increasingly replacing human hands. As conveyor belts speed through parcels at breakneck pace, executives are pulling levers behind the scenes—cutting tens of thousands of jobs and pivoting away from one of their most iconic business relationships.
WHAT WE KNOW
UPS confirmed on Tuesday it will eliminate around 20,000 jobs globally—part of a deliberate pivot toward a more technologically efficient business model. CEO Carol Tomé emphasized the decision is not driven by tariffs or geopolitical uncertainty, but rather by the company’s evolving operational needs.
The shift coincides with UPS’s previously announced decision to reduce its dependency on Amazon. In January, the firm unveiled a “glide down” strategy to halve its Amazon business by mid-2026. According to Tomé, much of that volume was “not profitable for us, nor a healthy fit for our network.”
The impact of this strategy is already visible: UPS’s Amazon-related package volume fell 16% in the last quarter—surpassing company expectations. The next phase of the transition involves shutting down 73 U.S. buildings by the end of June.
Meanwhile, automation is accelerating. From robotic sorting systems to automated loading mechanisms, 400 UPS facilities are slated for full or partial automation, drastically reshaping how parcels move through the network.
“With this reconfiguration, we will also lessen our dependency on labor,” said Tomé.
WHAT’S NEXT
UPS will move forward with facility closures and continue automating operations throughout 2025. The company has not yet adjusted its full-year financial outlook but warned it may do so depending on evolving macroeconomic conditions and the consumer response to new tariffs.
Executives are watching the effects of President Trump’s tariffs closely. Although UPS has not yet seen direct fallout in its core operations, the 145% duties on Chinese goods pose a risk, particularly for clients deeply integrated with Chinese supply chains.
VOICES ON THE GROUND
“If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way,” said Teamsters President Sean O’Brien. “But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”
In response, UPS spokesperson Glenn Zaccara said the company “intends to live up to all the terms of its contract.”
Tomé added her own candid assessment of the tariff landscape: “Candidly, there’s so much uncertainty around the China orders. We know what’s been announced. We don’t know actually if it will happen, and we don’t know if it will stick. We think there are many things we don’t know.”
CONTEXT
UPS’s strategy reflects broader trends in the logistics sector, where rising labor costs, evolving customer behavior, and the pressure to boost efficiency have driven companies toward automation. The split with Amazon—once seen as a cornerstone partnership—mirrors Amazon’s increasing shift to in-house logistics solutions.
The Trump administration’s aggressive tariff posture, particularly the recent sweeping 10% duties and the 145% spike on Chinese imports, introduces a layer of economic unpredictability for logistics providers. Many businesses are still weighing their responses, hoping for a rollback but preparing for sustained friction.
REPORTER INSIGHT
From corporate boardrooms to union halls, UPS’s transformation underscores the evolving face of modern logistics. While machines may speed up processes, the human cost of efficiency looms large—one that 20,000 employees will soon feel. As one chapter closes with Amazon, UPS is betting that a leaner, smarter infrastructure will define its future. Whether that gamble pays off amid global uncertainty remains to be seen.
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