UPS is looking to cut around 20,000 jobs and close more than 70 facilities, since it drastically reduces the amount of Amazon shipments it manages.
The package delivery company said Tuesday that he anticipates making employment cuts this year. He anticipates closing 73 leased and owner buildings at the end of June. UPS said he is still reviewing his network and can identify more buildings to close.
“The actions we are taking to reconfigure our network and reduce the cost in our business could not be more difficult,” said CEO Carol I took in a statement on Tuesday. “The macro environment can be uncertain, but with our actions, we will emerge as even stronger and more agile ups and downs.”
In January, UPS announced that it had reached an agreement with Amazon, its largest client, to reduce its volume by more than 50% in the second half of 2026.
During the UPS Fourth Quarter Telefónica Conference in January, Tomé said that the company had associated with Amazon for almost 30 years and that when its contract arose this year, UPS decided to reevaluate the relationship.
“Amazon is our biggest client, but it is not our most profitable client,” he said at that time. “His margin is very dilutive for the national business of the United States.”
Tomé said UPS considered several options and determined that the reduction in volume was the best alternative.
The company employs about 490,000 workers, according to FACTSET.
United Parcel Service Inc. also reported its financial results of the first quarter on Tuesday. The Atlanta -based company won $ 1.19 billion, or $$ 1.40 per share, at the quarter ended on March 31.
Ranabing certain articles, the profits were $ 1.49 per share. That is better than the $ 1.44 per share that the analysts surveyed by Zacks Investment Research were asking.
The income totaled $ 21.55 billion, exceeding the estate estate estimate of $ 21.06 billion.
UPS said he was not providing updates to his full -year -old full -year perspective, given the current macroeconomic uncertainty. The company said previously that it was waiting for 2025 of approximately $ 89 billion.
UPS actions increased slightly in morning trade.
