UPS to Cut 20,000 Jobs, Close Dozens of Facilities Amid Major Shift Away from Amazon Deliveries

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.