UPS to cut 20,000 jobs amid Amazon volume drop and trade tensions linked to U.S. tariffs
UPS announced it will cut 20,000 jobs and close 73 facilities, citing a 50% reduction in shipping volume from Amazon and global trade disruptions linked to U.S. tariffs, Reuters reported.
The move is part of a broader cost-cutting strategy aimed at saving $3.5 billion in 2025. UPS also faces declining shipments from Chinese retailers Temu and Shein, as the U.S. plans to end duty-free import status for their packages.
The job cuts raise concerns with the Teamsters union, which warned UPS not to violate its labor agreement requiring job creation. CEO Carol Tome said tariffs imposed by President Trump pose historic challenges to trade, especially with China, which is vital to UPS’s international revenue.
While UPS sees rising volumes from Europe and Southeast Asia, replacing China as a trade partner will take years. UPS forecasts lower profit margins and a drop in U.S. package volume, with economic uncertainty clouding outlooks for 2025.
