UPS let go Amazon to be more profitable. It is now reducing 20,000 jobs and plans to close more than 70 facilities

• Global Courier UPS It is reducing 20,000 jobs and automating hundreds of installations as it seeks to increase the profitability in the middle of a mass revision of its delivery network. Earlier this year, the company announced an ambitious plan to disrupt the Amazon In favor of more profitable packages, just before Trump’s tariff ads sent the world commercial volumes that fell.

United Package Service He made waves earlier this year when he announced a break with the largest electronic commerce retailer in the world. Amazon, a competitor and a client who brings more than one tenth of SAI’s income, had been unprofitable for the shipping and In January This year, UPS announced plans to reduce the volume he handed over to Amazon 50% in about a year and a half.

“They are our biggest customer, but they are not our most profitable customer,” said Carol Tomé, CEO of UPS Bloomberg Televisiondescribing the movement as “taking control of our destiny”.

Three months later, Destiny has become clearer, as the UPS announces plans to reduce 20,000 jobs, close 73 facilities and return its shipping network to use less human labor; It changes the sender who said he was “online” with the volume of Amazon he was losing, but he also set up to move more.

“We are running the reconfiguration of the largest network in our history,” Tomé told the company gain Call Tuesday after announcing the changes.

Amazon’s deliveries are going down are “not profitable for us, or a healthy adjustment for our network,” he said. In addition, SAI plans increased automation, he said, “will reduce our dependence on work (i) will reduce the capital requirements needed to execute the network.”

About half of the buildings to be closed are in the east of the United States, said CFO Brian Dykes. The 20,000 cut -off jobs “will be held throughout the North -American Network.”

The UPS modernization push, parts of which have been announced above, involves consolidating and closing 200 planning facilities for five years. Under the plane, the nickname “Network of the Future”, the sender has been automating the arrangement of packages; He is also looking to use robotics for tasks such as loading and unloading trailers and apply labels, Tomé told the investors.

Ultimately, about 400 facilities on the UPS network will be partially or completely automated, said Nando Cesarone, president of us, to investors. “The end result will be a much more efficient operation with less dependence on work,” he said.

This is a little desired news for the Teamsters Union, which represents about 350,000 UPS workers historic contract For its squad two years ago.

“If UPS wants to continue to reduce corporate management, Teamsters will not remain on their way,” said Teamsters, Sean O’Brien, in a statement. “But if the company intends to violate our contract or try to follow after the hard struggle, the teams of good payment, the SAI will have a struggle.”

Shipment uncertainty ahead

However, the discouping of Amazon UPS can be the easy part of its reconfiguration. Weeks after the change announced that the change, President Donald Trump announced tariffs to United States commercial members, effectively increasing consumer prices over thousands of assets and launching the nation in a series of high renegotiations with dozens of nations. Currently importers pay a 10% reference line to all imports and 145% to most imports from China, while different rates of “reciprocal rates” of almost 60 countries It will be running this summer.

This disorder was less shipping for UPS in February and March, and led to the sender to Yank Guides for the rest of the year.

“The world has not faced a huge potential impact on trade in more than 100 years,” said Tomé. “The only thing we are sure is that we do not know what, if any, our scenarios.”

According to executives, only about 2% of UPS volume comes from international packages. However, China’s commercial lines in the United States of UPS are the most profitable in the company, Tomé told the investors. But as this route dries, the company sees increasing demand in China shipments to the rest of the world, as well as Europe, Thailand and Vietnam.

The company provides for a 9% drop in US shipments to the second quarter and a modest fall of income.

“There is so much uncertainty in China, it has now been announced,” said Tomé. “We don’t really know what’s going to happen. We don’t know if it will adapt. There are many things we don’t know.”

This story originally presented to Fortune.com

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