United Parcel Service (UPS) announced Tuesday it will eliminate around 20,000 jobs and close 73 facilities as part of a sweeping cost-cutting plan tied to its decreasing reliance on Amazon.

The move comes as the package delivery giant prepares to significantly scale back its business with Amazon, its biggest — but less profitable — customer. The cuts are expected to take place throughout 2025, with facility closures targeted for completion by the end of June. UPS is still reviewing its network, meaning more closures could follow.

“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” said CEO Carol Tomé. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”

In January, UPS revealed it had reached a deal with Amazon to reduce package volume by more than 50% by the second half of 2026. Tomé emphasized that while Amazon has been a key partner for nearly 30 years, its deliveries weren’t boosting the bottom line.

“Amazon is our largest customer, but it’s not our most profitable one,” she explained. “Its margin is very dilutive to the U.S. domestic business.”

UPS evaluated several strategic options before settling on cutting volume — a move the company believes will ultimately lead to better operational efficiency and profitability.

The announcement came alongside UPS’s first-quarter earnings report. The Atlanta-based company posted a net income of $1.19 billion ($1.40 per share) for the quarter ending March 31. Excluding certain items, earnings hit $1.49 per share, topping analysts’ expectations of $1.44.

Revenue also beat Wall Street forecasts, coming in at $21.55 billion, compared to an estimated $21.06 billion.

Despite the financial beat, UPS is holding off on updating its full-year forecast due to ongoing economic uncertainty. Previously, the company projected $89 billion in revenue for 2025.

UPS, which employs around 490,000 people, saw its stock rise slightly in early trading following the news.

Source: AP News – UPS to cut 20,000 jobs, close some facilities as it reduces amount of Amazon shipments it handles

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Workday is laying off 1,750 employees, accounting for 8.5% of its workforce, as part of its ongoing restructuring efforts.

CEO: Layoffs Necessary for Growth and AI Investments

In a memo to employees on Wednesday, CEO Carl Eschenbach described the layoffs as a strategic move to position Workday for future growth, particularly in artificial intelligence (AI) investments.

“As we start our new fiscal year, we’re at a pivotal moment,” Eschenbach wrote in a securities filing. “Companies everywhere are reimagining how work gets done, and the increasing demand for AI has the potential to drive a new era of growth for Workday.”

Employee Notifications and Support

Workday plans to notify most affected employees on Wednesday. Acknowledging the impact of the decision, Eschenbach encouraged employees to work remotely or head home for the day.

Laid-off U.S. employees will receive at least 12 weeks of severance pay, with additional compensation based on tenure. Employees in other countries will receive severance packages in accordance with local labor laws.

Office Space Reduction and Global Expansion

As part of the restructuring, Workday also plans to exit certain office spaces, though specific locations and timelines were not disclosed. Despite the layoffs, the company aims to expand its global presence by investing in strategic locations and will continue hiring for select roles.

Financial Impact and Industry Context

Workday anticipates restructuring costs between $230 million and $270 million, covering severance, employee benefits, and other related expenses.

The job cuts come as the tech sector continues to see widespread layoffs, with Intel, Cisco, and Apple also making significant workforce reductions over the past year. Many companies are restructuring to remain competitive while shifting their focus toward AI and evolving market demands.

Financial Performance and Market Reaction

Workday is set to release its full-year 2025 earnings later this month. In the third quarter, the company reported:
* Net income: $193 million (up from $132 million the previous year)
* Revenue: $2.16 billion (up from $2.09 billion)

Despite the layoffs, Workday’s stock rose more than 2.5% in midday trading on Wednesday.

Source

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