UPS plans to slash 20,000 jobs this year as part of a cost-cutting drive amid the shifting global trade landscape triggered by President Donald Trump’s tariffs.
The move comes as the shipping giant grapples with soft demand, especially from its largest customers. UPS said it would also look to close 73 facilities by the end of June.
“With our action, we will emerge as an even stronger, more nimble UPS,” the company’s CEO, Carol Tomé, said in a statement on Tuesday.
Tomé said that the transformation would help UPS adapt to “a changing trade environment” and better position it for long-term growth.
The company said it would save $3.5 billion in 2025 through the cuts.
UPS made the announcement alongside its first-quarter 2025 earnings report, which showed a slight revenue dip to $21.5 billion — down 0.7% from the same period last year — while its adjusted operating profit inched up 0.9% to $1.7 billion.
The parcel giant also pulled its financial guidance for the year, saying that uncertainty around the impact of Trump’s tariffs meant it could not provide forecasts.
“Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook,” the company said.
Its supply chain business suffered the most last quarter, with revenue plunging nearly 15%, primarily due to the divestiture of Coyote Logistics.
The cost-cutting drive comes after UPS told investors earlier this year it would reduce its Amazon business by 50% by mid-2026, citing profitability reasons.
“This was not their ask,” Tomé said on an investor call in January. “This was us. This was UPS taking control of our destiny.”
On Tuesday, UPS said the restructuring could expand depending on further network review. In the first quarter, it said it made $80 million in savings and booked $23 million in related costs.
