April 30, 2025 — UPS has announced a major restructuring move, cutting 20,000 jobs and closing dozens of facilities as it adapts to a sharp reduction in shipments from Amazon, its largest customer.

The global shipping giant, which employs around 490,000 workers, will eliminate just over 4% of its workforce. In addition to the layoffs, UPS plans to shutter 73 buildings by the end of June 2025, with more closures potentially on the horizon.

CFO Brian Dykes explained the decision during an earnings call, emphasizing the company’s focus on improving U.S. domestic margins and increasing profitability. UPS expects to save $3.5 billion this year from the consolidation plan.

This shakeup follows a January announcement that UPS and Amazon agreed to significantly decrease delivery volumes — by more than 50% starting in the second half of 2026. Rather than a setback, UPS positions the move as a strategic choice to prioritize higher-margin business over bulk volume.

UPS shares slipped slightly in early trading after the announcement. Meanwhile, broader industry pressures are mounting. The company also warned of additional risks tied to new tariffs introduced by the Trump administration, which are already slowing global trade.

To help customers navigate the changing trade environment, UPS has introduced UPS Global Checkout, a tool that transparently shows international shoppers duties, taxes, and fees upfront.

As UPS reshapes its operations, it signals a broader shift across the logistics industry — one where efficiency and profitability are taking precedence over sheer scale.