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UPS on Tuesday announced plans to cut 20,000 jobs this year—over 4% of its 490,000-strong workforce—as part of a wider cost-cutting effort tied directly to a sharp reduction in Amazon shipments. The logistics giant, operating in more than 200 countries, said these ups layoffs amazon were necessary after it agreed to deliver fewer packages for its largest customer.

Chief Financial Officer Brian Dykes framed the job cuts and facility closures as key to “expand our U.S. Domestic operating margin and increase profitability.” UPS plans to shutter 73 buildings by June 2025, with the possibility of more closures to follow. In a Tuesday regulatory filing, the company linked these actions to its “anticipation of lower volumes from our largest customer.” Last quarter’s revenue of $21.5 billion will be bolstered by an expected $3.5 billion in savings from this consolidation.

Union Pushback and Contractual Clashes

The Teamsters have signaled a fierce defense of their members’ jobs. Teamsters General President Sean M. O’Brien reminded UPS it is contractually bound to create 30,000 Teamster positions under the national master agreement. “If UPS intends to violate our contract or target hard-fought, good-paying Teamster jobs,” O’Brien warned, “UPS will be in for a hell of a fight.” Yet he conceded that downsizing corporate management would face no union resistance.

A “Strong” Amazon-UPS Partnership Shifts

Earlier this year, UPS and Amazon agreed to cut UPS’s volume by over 50% in H2 2026—a move the shipper says Santa Cruz-style is “focused on revenue quality.” An Amazon spokesperson clarified: “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision.” Despite the scale-back, Amazon insists its relationship with UPS remains robust; it even offered to increase volumes before UPS opted to pare them down.

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UPS by the Numbers

• Employees Impacted: 20,000 layoffs, following 12,000 cuts announced last year
• Facilities Closing: 73 buildings by June 2025
• Revenue (Q1 2025): $21.5 billion
• Expected Savings: $3.5 billion in 2025
• Daily Parcel Volume: 22.4 million per day in 2024 (5.7 billion annually)
• Import Parcels Handled: 400,000 daily (2% of daily volume)
• China–U.S. Trade Revenue: 11% of UPS’s international revenue, its most profitable lane

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Trade Risks and Tariff Pressures

UPS CEO Carol Tomé flagged global trade policy as another looming risk. After months of fresh amazon tariffs and other import levies, the company warns of potential supply shocks. “Our China to U.S. trade lanes are our most profitable trade lines,” Tomé noted, stressing UPS’s use of a new online tool—UPS Global Checkout—to display duties, fees, and taxes upfront for shoppers.

Meanwhile, Amazon found itself in the crosshairs of the White House when press secretary Karoline Leavitt accused the retailer of a “hostile and political act” for reportedly planning to display tariff costs on product pages—an idea Amazon says remains confined to its low-cost Haul site and will not affect the main platform.

What’s Next for UPS and Amazon

As UPS navigates these layoffs and closures, customers and investors will watch how quickly the company can recalibrate operations. UPS shares dipped 0.6% to $96.61 in afternoon trading on the news. For Amazon, the focus will be on balancing its global shipping mix while preserving its “strong working relationship” with UPS and other carriers.

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