UPS to cut 20,000 jobs worldwide this year
Package delivery giant UPS's plan to cut 20,000 jobs worldwide in 2025 is a significant move for the company, primarily driven by the reduction in business from Amazon, its largest customer.
This is part of a broader effort to adjust its operations to align with a "changing trade environment." The cuts and closures of facilities come as UPS aims to reduce costs and streamline its workforce to adapt to shifts in demand and profitability.
Despite the job cuts, UPS reported a 7.2% increase in profits for the last quarter, reaching $1.2 billion, although its revenues declined slightly by 0.7%. The move to scale back operations with Amazon and the overall reconfiguration of its business are seen as steps to strengthen the company for future growth.
This adjustment follows a strategic decision made earlier in the year to reduce its Amazon volumes by more than 50% by 2026, allowing UPS to phase out less profitable areas of its operations.
Although these changes indicate a challenging period ahead, the company remains optimistic about emerging stronger in a volatile economic environment.
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