UPS to cut at least 20,000 jobs

United Parcel Service (UPS) plans to eliminate at least 20,000 jobs this year. The move was made because the company is slashing shipments for e-commerce giant Amazon.com Inc.

In addition, in a statement, UPS explained that within its cutback plan is also to close 73 buildings by the end of June 2025.

"We expect to reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025. We are continuing to review our network and may identify additional buildings for closure." UPS said in the statement.

In that regard, the company said it anticipates that this year "$3.5 billion of total cost savings will be delivered from Network Reconfiguration and Efficiency Reimagined in 2025."

UPS CEO Carol Tomé explained that the decision was made "to assist our customers as they adapt to a changing trade environment."

"Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS", Tomé said.