UPS said it would reduce 20,000 jobs this year and close more than 70 buildings, as the logistics group seeks to reduce costs and prepare to reduce the volume of the Amazon package, its largest customer.
Reducing jobs will be aimed at workers responsible for the delivery of customer packages and the support of the company’s transport and logistics services, and will come after the group last year decreases about 14,000 jobs, mainly in leadership roles.
The last reduction in the number of number of number is part of the UPS plan to increase the efficiency and consolidation of its internal network in the United States after the company stated that in January it reached an agreement in principle with its “most large client” to reduce its volume to the second half of 2026.
Amazon It represents 12 percent of the $ 91 billion revenue in 2024, according to a 10-k submission of the delivery company, especially in the US internal package segment. His own parcel volume is now competing of those of UPS and FedEx.
Explaining the decision in January to reduce its business with the e -commerce group, UPS CEO Carol Tome told analysts: “Amazon is our largest customer, but this is not our most profitable customer. Her margin is very diluted for the US internal business.”
In an attempt to bring into account its network with the coming down in the business of Amazon, UPS He said on Tuesday that he also expects to close 73 leased and owned buildings in 2025. The company had previously indicated that it would also have to reduce its airplane fleets and vehicles.
Atlanta -based company has about 490,000 staff worldwide, with almost 83 percent of the US -based, according to the group’s latest submission.
UPS said it was expecting $ 3.5 billion in 2025 savings in its plan and expecting $ 400 million to $ 600 million this year related to early asset pensions, leasing -related costs and employee division benefits.
“(T) He actions we are taking to reconfigure our network and reduce the cost of our entire business can not be more time. The macro environment can be uncertain, but with our actions we will emerge as more strong, more upset,” said Tome in a statement on Tuesday as the company reports.
For the first three months of 2025, UPS reported a net income of $ 1.2 billion at less than expected revenue drops to $ 21.5 billion, but declined to update its prospects for the year due to macroeconomic “uncertainty”.
UPS shares have decreased by 1 percent in trade before the market on Tuesday.