The company says the move is part of a broader strategy to streamline operations and ensure long-term financial health.
“As the world of logistics continues to evolve, we’re making tough but necessary decisions to keep UPS strong for the future,” said CEO Carol Tomé. “With Amazon increasingly handling its own deliveries and customer behaviors shifting, it’s time for us to refocus.”
Amazon was once one of UPS’s largest clients, but the retail giant has steadily built its own delivery network over the years. That has led to a sharp decline in the number of Amazon packages handled by UPS — and a need for the company to adjust accordingly.
The 20,000 roles being phased out span a variety of departments and regions, affecting both full-time and part-time employees. UPS said it will provide support for impacted workers, including severance packages, job placement assistance, and other transition resources.
Labor unions, including the International Brotherhood of Teamsters — which represents hundreds of thousands of UPS employees — said they are monitoring the situation closely to ensure workers’ rights are upheld.
Despite the cuts, UPS emphasized that it's still investing in future growth, including automation, digital tools, and services aimed at smaller businesses. The company says these efforts are part of a broader plan to stay competitive in a rapidly changing logistics landscape.
“Our goal is to build a smarter, more agile UPS,” Tomé added. “This isn’t just about cost-cutting — it’s about positioning ourselves to serve customers better in the years ahead.”
Following the announcement, UPS shares rose nearly 3% in after-hours trading as investors welcomed the company’s efforts to become more efficient.
The workforce changes are expected to be completed by the end of 2025.
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