Why is UPS laying off 20000 employees in 2025

UPS is reducing its workforce due to a 53 revenue drop and declining shipments from Amazon prompting a major restructuring effort

Which jobs will be affected by the UPS layoffs

The layoffs will impact both corporate and frontline employees with notifications expected over the coming months

Is UPS closing any facilities as part of the restructuring

Yes UPS plans to shut down several underutilized facilities and streamline its US network to reduce costs

How is Amazon involved in UPSs revenue decline

As Amazon expands its inhouse delivery network UPS has seen a decline in parcel volumes from the ecommerce giant

Will UPS provide support to affected employees

UPS has stated it will offer severance packages and transition assistance to employees impacted by the layoffs

UPS to Cut 20,000 Jobs, Close Facilities Amid Revenue Drop and Amazon Shipment Decline

After registering a sharp drop in revenue in the first quarter of 2025, $UPS has announced plans to eliminate 20,000 jobs as well as streamline and shutter several locations. The logistics company experienced a 5.3% revenue drop due to lower shipment volumes, most notably with Amazon, their second largest client.

As Amazon continues to erect its own delivery network, UPS has been witnessing a greatly diminishing parcel flow stemming from the e-commerce leader. In turn, the company is trying to adjust by closing lower demand terminals, automating, and optimizing its U.S. network to save costs and increase efficiency.

As the restructuring is set for implementation, reductions are expected to be realized in the latter part of 2025. With the latest round of shipping restructuring consolidations, optimization of the internal shell structure is anticipated to help boost productivity as well as improve flexibility at headquarters.

Displaced employees will be contracted and provided with severance, bolstering the transition ease into their new roles.

While these changes are meant to unlock additional savings for the company, shareholders are adopting a more prudent approach steering through this unpredictable phase, monitoring to see how claims across the globe will affect UPS.