United Parcel Service (UPS) has announced plans to lay off 20,000 employees and close 73 facilities by the end of June 2025. This decision follows a strategic reduction in its business with Amazon and broader economic challenges. The company aims to save approximately $3.5 billion this year through these measures. ​

In the first quarter of 2025, UPS reported revenue of $21.55 billion, surpassing Wall Street’s estimate of $21.06 billion. Adjusted earnings per share were $1.49, exceeding the anticipated $1.44. However, the company has refrained from updating its full-year outlook due to ongoing macroeconomic uncertainties. ​

The workforce reduction and facility closures are part of UPS’s broader strategy to optimize its operations. CEO Carol Tomé stated that the company has reached an agreement in principle with Amazon to lower shipping volumes by more than 50% by the second half of 2026. This move aims to enhance profitability and operational efficiency. ​

Despite the challenges, UPS remains committed to adapting to the evolving business landscape. The company is implementing initiatives to streamline operations and position itself for sustainable growth in the future.​

As of the latest trading session, UPS shares are priced at $95.30, reflecting a 1.49% decrease from the previous close.