INDIANA – Package delivery giant UPS announced on Tuesday its plans to eliminate approximately 20,000 jobs and close more than 70 facilities as it significantly scales back the volume of Amazon shipments it handles.
The company anticipates job reductions throughout this year. Additionally, UPS intends to close 73 leased and owned buildings by the end of June, with the possibility of further facility closures as its network review continues.
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” stated CEO Carol Tomé on Tuesday. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
This strategic shift follows UPS’ January announcement of an agreement with Amazon, its largest customer, to decrease its shipment volume by over 50% by the latter half of 2026.
During the company’s fourth-quarter earnings call in January, Tomé explained that after nearly 30 years of partnership, UPS decided to reassess its relationship with Amazon as their contract approached its expiration this year. The move reflects UPS’ broader strategy to optimize its network and reduce costs in a changing economic landscape.
