UPS Layoffs 2025: 20,000 Jobs Cut and 73 Facilities to close

The United Parcel Service (UPS) has officially announced their plan of laying off their 20,000 jobs and to close the 73 facilities of their company. This decision has arrived after the company encountering deep economic woes and the disappearing demand from the biggest customer. 

“We’re facing massive disruptions we haven’t seen in a century” – CEO, Carol Tome.

This lay off is estimated to be 4% of its global employee base of nearly 500,000 and from the given information it is reported that this action will be taking place across various departments and locations. Also, the 73 facilities closure indicates their aim of enhancing the operations through an effective automation process. Both the decisions of the company are projected to save $3.5 billion in 2025.

“The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS” – CEO, Carol Tome

Furthermore, UPS has reconsulted their with Amazon, who is their largest customer of theirs. It will result in a planned reduction of 50% in the package volume in the second half of the 2026 from Amazon. Due to the lower profit margins associated with Amazon. Previously, in the year 2024, UPS did the layoff of 12,000 jobs of the management positions to align with the growing market conditions and technological advancements.