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UPS to cut 20,000 jobs as it prepares to halve Amazon shipments
FT - Gift LinkUPS has said it will cut 20,000 jobs this year and close more than 70 buildings as the logistics group seeks to reduce costs and prepare for a halving in package volume from Amazon, its biggest customer.
The job cuts will target workers responsible for delivering packages to customers and supporting UPS’s transportation and logistics services, and come after the group last year cut about 14,000 jobs, primarily in management roles.
The latest reduction in headcount is part of UPS’s plan to boost efficiency and consolidate its US domestic network after it said in January it had reached an agreement in principle with its “largest customer” to lower its volume by the second half of 2026.
Amazon accounted for 12 per cent of UPS’s $91bn in revenue during 2024, according to the delivery company’s 10-K filing, mostly in the group’s US domestic package segment. Its own parcel volumes now rival those of UPS and FedEx.
In explaining the decision in January to reduce its business with the ecommerce group, UPS chief executive Carol Tomé told analysts: “Amazon is our largest customer, but it’s not our most profitable customer. Its margin is very dilutive to the US domestic business.”
The job cuts will target workers responsible for delivering packages to customers and supporting UPS’s transportation and logistics services, and come after the group last year cut about 14,000 jobs, primarily in management roles.
The latest reduction in headcount is part of UPS’s plan to boost efficiency and consolidate its US domestic network after it said in January it had reached an agreement in principle with its “largest customer” to lower its volume by the second half of 2026.
Amazon accounted for 12 per cent of UPS’s $91bn in revenue during 2024, according to the delivery company’s 10-K filing, mostly in the group’s US domestic package segment. Its own parcel volumes now rival those of UPS and FedEx.
In explaining the decision in January to reduce its business with the ecommerce group, UPS chief executive Carol Tomé told analysts: “Amazon is our largest customer, but it’s not our most profitable customer. Its margin is very dilutive to the US domestic business.”