UPS to cut 20,000 jobs, shut 73 facilities with drop in Amazon deliveries

United Parcel Service (UPS) said on April 29 it would slash 20,000 jobs and shut 73 facilities as part of a planned reduction in deliveries for Amazon.com, and amid US President Donald Trump's tariffs that are roiling global trade.

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A UPS spokesperson said the layoffs are due to the shedding of 50 per cent of shipping volume from Amazon.com, its largest customer, as well as ongoing cost-cutting and efficiency projects under a major operational restructuring.

An Amazon spokesperson said: "Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision."

UPS also faces a sharp downturn in volume from China-linked bargain e-commerce sellers Temu and Shein because the US plans in May to end duty-free status for most of their packages coming to the United States. Temu is already tacking on an import charge at checkout, while Shein has added the tariffs to the price of goods.

The move comes as Mr. Trump's aggressive trade policies have begun slowing economic growth and increasing expectations for a possible recession.

UPS is contractually obligated to create 30,000 jobs under its current national master agreement with Teamsters, the union's general president Sean O'Brien said.