Delivery company UPS to cut 20,000 jobs worldwide this year

From a contract change with Amazon to a massive layoff plan. The American courier and parcel delivery group UPS announced this Tuesday, April 29, during the publication of its quarterly results that it intends to "reduce its operational workforce" this year. Approximately "20,000 positions" will be affected, which will involve the closure of 73 buildings by the end of June 2025, out of the 490,000 people the company employs worldwide, according to its website.

The announcement comes months after UPS downgraded its contract with Amazon . In late January, UPS announced it expected revenue to decline in 2025 after reaching an agreement with its largest customer to reduce its volume by more than 50% by June 2026. Amazon accounted for nearly 12% of UPS's revenue, a level UPS considered too high.

The company had then indicated that it was beginning a reorganization that would lead it to close up to 10% of its centers, reduce the size of its vehicle and aircraft fleets and reduce its workforce, but it had not yet specified the number of employees affected.

From January to the end of March, the Atlanta, Georgia-based company also recorded a nearly stable revenue of $21.5 billion (-0.7% year-on-year), exceeding the expectations of analysts surveyed by Factset. Net income stood at approximately $1.19 billion, up 6.6%, again above analysts' expectations.

Given the current macroeconomic uncertainty, the company indicated that it will not provide an update to its annual outlook. In premarket trading on the New York Stock Exchange, the stock rose 1.1%.