Tue Apr 29 16:50:00 UTC 2025: ## UPS to Cut 20,000 Jobs Amidst Amazon Business Reduction and Automation Push

**Atlanta, GA –** United Parcel Service (UPS) announced Tuesday it will eliminate approximately 20,000 jobs globally this year, representing about 4% of its workforce. The company stressed that this reduction is not a result of tariffs, but rather a strategic shift driven by increased automation and a planned scaling back of its business with Amazon.

UPS is actively implementing a “glide down” strategy, aiming to halve its Amazon business by mid-2026. CEO Carol Tome explained that a significant portion of the Amazon business being relinquished is unprofitable and doesn’t align with the company’s network strategy. This strategic move is already impacting UPS, with Amazon package volume down 16% in the last quarter – exceeding initial projections. As part of this plan, UPS will close 73 US facilities by the end of June.

To further enhance efficiency, UPS is accelerating automation across its network. 400 facilities will undergo partial or complete automation, encompassing tasks from package sorting and labeling to truck loading and unloading. Tome stated that this reconfiguration will reduce labor dependency.

While acknowledging some impact from tariffs, particularly the high tariffs on Chinese imports, UPS remains uncertain about the long-term effects. Although some customers with significant China business are hesitant to exit the market, many are awaiting clarity on future tariff policies.

The combination of reduced Amazon business and anticipated tariff impacts led UPS to forecast a revenue decline in the second quarter. However, the company hasn’t yet revised its full-year guidance, but warned that this could change depending on future developments. The uncertainty surrounding tariffs and their effect on consumer spending is a significant factor in this cautious outlook.

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