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UPS cuts 20,000 jobs: Amazon causes massive layoffs!
UPS announces 20,000 job cuts worldwide due to declining shipping volumes from Amazon.
UPS cuts 20,000 jobs: Amazon causes massive layoffs!
The US parcel delivery service UPS has announced that it will cut 20,000 jobs worldwide. The decision was announced Tuesday in New York and is a response to significantly lower shipping volumes from Amazon, the company's largest customer. UPS plans to transport half as many packages for Amazon by June 2026, which has a significant impact on the company's structure. By the end of 2024, UPS employed around 490,000 people globally.
The announcement comes as UPS is already evaluating other cost-cutting measures. Company boss Carol Tome referred to the uncertainties surrounding customs policy under Donald Trump's presidency. Despite the challenges, the company reported net income of nearly $1.2 billion for the first quarter of 2025, up about seven percent from a year earlier. However, sales fell 0.7 percent to $21.5 billion.
Closings and staff reductions
A total of 73 rented and owned buildings are to be closed by the end of June. The reduction in operational staff will take place over the course of 2025. UPS is responding to a “changing trading environment” and trying to increase the company's efficiency.
An Amazon spokeswoman, Kelly Nantel, confirmed the drop in shipping volume and emphasized its continued partnership with UPS. This development shows how strongly dependence on a major customer can influence corporate strategy.
Context of the labor market situation
The situation at UPS is not isolated. German companies, especially in industry, are also planning increased job cuts, which is illustrated by a decline in the ifo employment barometer to 93.0 points in February. This number is below the 2020 value and reflects the tight situation on the labor market. Labor market experts expect an increase in unemployment in Germany this year.
In summary, the job cuts at UPS highlight the current challenges in the logistics sector, which are exacerbated by changing customer needs and economic uncertainties. At the same time, this is another indicator of the structural change that is affecting many industries worldwide.