It says the move will help save $3.5 billion in 2025.
Transcript:
While announcing it had a better first quarter than expected, UPS revealed it will be making some big changes. The logistics company said it will cut 20,000 jobs in an effort to lower costs. It also plans to shut down 73 of its buildings by the end of June.
UPS originally said it would cut 12,000 jobs, but economic uncertainty — as well as an expected decrease in Amazon shipments has the company scrambling to save money. In January, UPS said it planned to slash millions of Amazon deliveries, with CEO Carol Tomé saying “Amazon is our largest customer, but it’s not our most profitable customer.”
UPS says it expects to save about $3.5 billion in 2025 with the cost-cutting measures.
UPS also expects to see a decrease in traffic from Chinese e-commerce platforms Temu and Schein. That forecast comes after the U.S. said it will begin collecting tariffs on goods that were, until now, duty-free up to $800.
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