UPS to Layoff 20000 Employees and Close 73 Facilities

United Parcel Service (UPS) is undertaking significant restructuring measures, including the layoff of approximately 20,000 employees and the closure of 73 facilities by June 2025.

These actions are part of a strategic initiative to reduce costs and adapt to anticipated declines in shipping volumes, particularly from major clients like Amazon.

CEO Carol Tomé, as per a Reuters report, emphasized the necessity of these changes, stating:

"The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier."

Despite reporting better-than-expected earnings for the first quarter of 2025, with an adjusted earnings per share of $1.49 and revenue of $21.5 billion, UPS is proactively addressing economic uncertainties and shifting market demands.

Just to let you know, UPS laid off about 12,000 workers last year, and now in 2025, they are cutting 20,000 jobs and still showing positive profits.

Being the world's largest package delivery company, UPS projects that these restructuring efforts will result in $3.5 billion in cost savings for 2025, although they will incur short-term expenses estimated between $400 million and $600 million.

These developments reflect UPS's commitment to aligning its operations with current economic conditions and customer needs, ensuring long-term sustainability and competitiveness in the logistics industry.