By: Richard L. Smith
United Parcel Service (UPS) announced plans to eliminate approximately 20,000 jobs and close 73 facilities by the end of June 2025.
According to information released by UPS officials, these actions are part of a broader strategy to cut costs in response to a significant decline in package volume from Amazon and ongoing global trade uncertainties, including tariffs.
The job cuts represent just over 4% of UPS’s global workforce, which currently numbers around 490,000 employees.
The company has not disclosed which locations will be affected, and there is currently no information indicating whether any UPS facilities or stores in New Jersey will be impacted by the closures.
In January, UPS reached an agreement with Amazon, its largest customer, to reduce package volume by more than 50% beginning in the second half of 2026.
Amazon, which accounted for approximately 11.8% of UPS’s revenue in 2024, was described by CEO Carol Tomé as being "very dilutive" to the profitability of UPS’s U.S. domestic business.
The decision to downsize also comes amid broader economic challenges, including the effects of international tariffs on global trade. UPS expects to save approximately