UPS’s first-quarter results revealed consolidated revenue of $21.5 billion, down slightly from $21.7 billion a year earlier. In response to “current macro-economic uncertainty,” CEO Carol Tomé said the company must “reconfigure our network and reduce cost across our business” to remain “stronger [and] more nimble.”
The planned 20,000 job cuts will largely affect the operational workforce responsible for sorting, transporting, and delivering packages. This follows 12,000 layoffs in 2024 and comes alongside the announced closure of 73 leased and owned facilities by the end of June.
UPS attributed the retrenchment to Donald Trump’s sweeping tariffs, which have discouraged customers from shipping goods, and warned of “lower volumes” expected from Amazon its biggest customer, which represented 11.8% of UPS’s 2024 revenue. The company also said it would pause updates to its full-year guidance due to the uncertain outlook.
The Teamsters union, representing approximately 330,000 of UPS’s 490,000 employees, cautioned that UPS is contractually required to create 30,000 Teamsters jobs under their current agreement. Teamsters President Sean O’Brien stated that while the union will not oppose cuts to corporate management, any attempt to “go after hard-fought, good-paying Teamsters jobs” will be met with fierce resistance.
