UPS to Cut 20,000 Jobs and Close 73 Facilities by June 2025 in Major Restructuring Effort

UPS to Cut 20,000 Jobs and Close 73 Facilities by June 2025 in Major Restructuring Effort

May 7, 2025 – In a bold move aimed at streamlining operations and improving profitability, United Parcel Service (UPS) has announced it will eliminate approximately 20,000 jobs and shut down 73 facilities across its U.S. network by June 2025. The decision is part of the company’s sweeping “Network of the Future” initiative, which seeks to create a more agile and cost-efficient logistics operation.

The restructuring comes as UPS faces declining package volumes, particularly from Amazon — its largest client — whose business with UPS is projected to drop by more than 50% by late 2026. While Amazon has historically provided high volume for UPS, its contracts have also been less profitable compared to other customers.

To offset this shift and regain momentum, UPS plans to invest $9 billion over the next five years to automate 63 of its facilities. Automation, according to the company, will improve productivity, reduce dependency on manual labor, and modernize the company’s aging infrastructure. Through these efforts, UPS aims to achieve $3.5 billion in cost savings by the end of 2028.

Despite the drastic changes, UPS reported a first-quarter net income of $1.2 billion on $21.5 billion in revenue. However, the results came in slightly below analyst expectations, and the company chose not to update its annual forecast due to economic uncertainties, including global trade tariffs and market instability.

The move reflects a larger trend in the logistics industry, where automation, e-commerce shifts, and labor costs are prompting companies to rethink how they operate. UPS’s restructuring is one of the largest in its history and is likely to reshape the company’s workforce and operational footprint for years to come.

As the logistics giant pivots to a leaner, more tech-driven model, both employees and industry watchers will be closely monitoring the impact of these changes on UPS’s future performance and market position.