UPS announced the layoffs April 29 in its first quarter earnings report, in which the parcel delivery service said it made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago. The shipping company also said it would be closing roughly 164 facilities by the end of the year.
Consolidation efforts for UPS come as President Donald Trump's looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout. In 2024, UPS employed around 490,000 people worldwide, including about 330,000 Teamsters-represented jobs in the U.S.
UPS reducing Amazon delivery volume by 50%: CFO
For UPS specifically, it cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, Amazon.com, which accounted for 11.8% of its overall revenue in 2024, CNBC reported.