United Parcel Service Cuts 20,000 Jobs

United Parcel Service announced plans to cut approximately 20,000 jobs and close 73 facilities by the end of June 2025. This restructuring is a direct response to a renegotiated contract with Amazon (company), its largest customer, which will see a reduction in shipping volume by over 50% by the second half of 2026. CEO Carol Tomé stated that these actions are crucial for reconfiguring the network, reducing costs, and emerging as a stronger, more nimble United Parcel Service. The company also reported better-than-expected first-quarter financial results, with adjusted earnings of $1.49 per share and revenue of $21.55 billion. Despite macroeconomic uncertainty, United Parcel Service aims to expand its U.S. Domestic operating margin and increase profitability. The decision to reduce Amazon (company) volume stems from the fact that Amazon (company) was not United Parcel Service's most profitable customer, with its margin being dilutive to the U.S. domestic business.