SAI to reduce 20,000 jobs as you prepare to reduce Amazon shipping

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The UPS has said it will reduce 20,000 jobs this year and will close more than 70 buildings, as the logistics group aims to reduce costs and prepare for half the volume of Amazon packages, its largest customer.

Work cuts will be gone to workers responsible for delivering packages to customers and supporting UpsTransportation and transportation services and after the group last year reduced around 14,000 jobs, mainly in management.

The last reduction in head count is part of the UPS plan to increase efficiency and consolidate its North -American National Network after saying that in January an agreement had reached its “largest customer” to reduce volume in the second half of 2026.

Amazon 12 percent of UPS $ 91 million in 2024, according to a delivery company’s 10-K, mainly in the United States National Package Segment. Its own volumes of plot now rival those of UPS and FEDEX.

When explaining the January decision to reduce his business with the e -commerce group, UPS’s CEO, Carol Tomé, said to analysts: “Amazon is our oldest customer, but he is not our most profitable client. His margin is very diluted for the National United States.”

In an effort to align his network with the decrease in Amazon’s business, he said on Tuesday that he also hoped to close 73 leased buildings and possess in 2025. He had previously stated that he should also reduce his fleets of planes and vehicles.

Management said the actions “could not be timelier” as the company browses the Trump’s Administration’s Rates to the United States commercial members. SAI refused to update his prospects for the year due to macroeconomic “uncertainty”.

Tomé said UPS sends about 400,000 packages to the US every day, which account for about 2 % of their daily global average volume.

He said that United States-Chinese commercial lines accounted for 11 percent of $ 18 million from the International Revenue Segment generated in 2024. Other commercial lanes sent to the United States represented about 18 percent of the division income, and the rest are completely abroad.

The Atlanta -based company has about 490,000 employees worldwide, with almost 83 percent of those based on the United States, according to the last presentation of the group.

UPS said he was expecting a cost savings of $ 3.5 million by 2025 of his plan and was expecting $ 400 million to $ 600 million this year related to early retirement of assets, costs related to leases and employee separation benefits.

During the first three months of 2025, UPS reported a net revenue of $ 1.2 million in a lower than expected revenue drop to $ 21.5 million.

UPS shares closed on Tuesday 0.4 percent lower.