UPS is looking to slash about 20,000 jobs and close more than 70 facilities as it drastically reduces the amount of Amazon shipments it handles, the Associated Press reports.
The package delivery company said Tuesday that it anticipates making the job cuts this year. It expects to close 73 leased and owned buildings by the end of June. UPS said that it is still reviewing its network and may identify more buildings to be shuttered.
In January UPS announced that it had reached a deal with Amazon, its biggest customer, to lower its volume by more than 50% by the second half of 2026. UPS reportedly considered various options and determined that the volume reduction was the best alternative.
The company employs about 490,000 workers, according to FactSet.
UPS also reported its first-quarter financial results on Tuesday. The Atlanta-based company earned $1.19 billion, or $1.40 per share, in the quarter ended March 31. Stripping out certain items, earnings were $1.49 per share. That’s better than the $1.44 per share that analysts polled by Zacks Investment Research were calling for.
Revenue totaled $21.55 billion, beating Wall Street’s estimate of $21.06 billion.
UPS said that it wasn’t providing any updates to its previously announced full-year outlook, given current macroeconomic uncertainty. The company previously said that it expected 2025 revenue of approximately $89 billion.
