UPS delivers economic pain with massive layoffs as Trump’s tariffs reshape America’s shipping landscape. The logistics giant announced slashing 20,000 jobs and closing 73 facilities amid declining demand from Amazon and growing pressure from President Trump’s strategic tariffs on Chinese imports.
American Workers Facing Layoffs as UPS Restructures
UPS is making drastic cuts to its workforce, announcing plans to eliminate 20,000 jobs as the company braces for weakened demand stemming from President Trump’s tariff policies. This latest round of cuts follows 12,000 layoffs already implemented last year, with the company specifically targeting “operational” employees who sort and deliver packages across America.
The massive restructuring aims to save $3.5 billion by cutting jobs and shuttering 73 buildings by the end of June, a move the company claims is necessary for survival. UPS expects to spend between $400 million and $600 million on restructuring costs through 2025, primarily for employee separation benefits and lease settlement expenses as they exit facilities.
Trump’s Tariffs Reshaping American Business Landscape
President Trump’s strategic tariffs, including a 145% rate on Chinese imports, have dramatically slowed international trade and forced American companies to reassess their business models. UPS CEO Carol Tomé acknowledged the significant impact these policies are having, particularly noting how small and mid-sized businesses importing from China are reconsidering their supply chains.
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The Trump administration’s plan to eliminate the de minimis exemption, which currently allows duty-free shipping for packages under $800, has put additional pressure on companies like UPS that handle international deliveries. This policy change could particularly impact Chinese fast-fashion retailers Shein and Temu, which have flooded the American market with cheap goods, often at the expense of American manufacturing jobs.
UPS Pivoting Away From Amazon Dependency
In a strategic shift, UPS plans to reduce Amazon deliveries by more than half to focus on more profitable business segments, despite Amazon packages accounting for 11.8% of UPS’s revenue last year. The logistics company’s first-quarter revenue fell to $21.5 billion but still exceeded Wall Street expectations of $21.05 billion, while adjusted profit per share reached $1.49, surpassing the expected $1.38.
“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” said Carol Tomé, UPS CEO. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
Despite economic challenges, UPS is maintaining its full-year forecast of $89 billion in revenue and an operating margin of 10.8%, signaling confidence in its restructuring strategy. Revenue in US segments actually grew 1.4% to $14.46 billion due to increased revenue per piece, showing that the company’s focus on higher-margin parcels may be paying off despite declining overall volumes.
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UPS to slash 20,000 jobs on weak Amazon deliveries over Trump tariff turmoil
UPS Says It Will Cut 20,000 Jobs in Efficiency Drive
UPS to cut 20,000 jobs on reduced Amazon deliveries, as US tariffs weigh | Reuters