UPS announced it will cut 20,000 jobs in 2025 as part of a cost-reduction strategy impacted by global trade changes and tariffs. The company reported a slight decrease in revenues and plans to close 73 facilities. CEO Carol Tome expressed confidence that these actions will strengthen the company despite macroeconomic uncertainties. Additionally, the anticipated lower shipping volumes, especially from major client Amazon, contributed to the decision to reduce operational workforce. The Teamsters union highlighted existing contractual obligations regarding job creation in response to these cuts.
The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.
The job cuts come as Donald Trump's sweeping tariffs are discouraging some UPS customers from shipping as many goods, impacting overall delivery volumes.
UPS plans to expand on its consolidations of facilities and workforce, and implement an end-to-end process redesign, due to anticipated lower volumes.
The Teamsters union responded to the latest earnings report by reminding UPS that it was contractually obligated to create 30,000 new jobs.
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