On 29 April 2025, shipping company UPS announced that it expects to cut around 20,000 jobs by the end of the year. This move is the result of a restructure following UPS’ decision earlier this year to reduce the volume of Amazon deliveries it fulfils.
In its Q1 2025 earnings statement, UPS confirmed that it expects to reduce its operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025. Furthermore, it explained that it is continuing to review its network and ‘may identify additional buildings for closure’.
UPS expects that this strategy, which it refers to as its ‘Network Reconfiguration and Efficiency Reimagined’ initiative, will result in a total of US$3.5 billion in cost savings in 2025.
Carol Tomé, CEO of UPS, commented: “As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment.
“Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
The firm first announced it would “reassess” its relationship with Amazon, its biggest customer, during its Q4 2024 earnings call in January 2025. Tomé said then: “We’ve been a partner to Amazon for nearly 30 years, and we hold that company in high regard. Amazon is our largest customer, but it’s not our most profitable customer. Its margin is very dilutive to the US domestic business.
“Our contract with Amazon came up this year, and so we said it’s time to step back for a moment and reassess our relationship, because if we take no action, it will likely result in diminishing returns.
“So we considered a number of different options and landed on what we think is the best option for our company, and that is to accelerate the glide down of their volume with us […] by more than 50% by June of 2026.”
Entries for the 29th edition of the Supply Chain Excellence Awards are open now!
There are 30 categories available to enter, spanning a broad range of industries, and highlighting excellence in logistics, supply chains, technology, innovation, people, transport and sustainability.
The Supply Chain Excellence Awards celebrate the hard work, dedication and innovation of those working in the logistics and supply chain sector, recognising excellence in the delivery of efficient, reliable and sustainable logistics.
Click here to learn more about the 2025 awards, and don’t forget to enter – it’s free!
