In a stunning announcement that underscores the growing ripple effects of global trade tensions and economic headwinds, United Parcel Service (UPS) said it plans to lay off approximately 20,000 workers by the end of 2025. The decision, announced during its first-quarter earnings report on Tuesday, marks one of the largest single-year workforce reductions in the company’s recent history.
The Atlanta-based logistics giant attributed the move to a combination of rising operational costs, a decline in shipping demand, and the escalating impact of new and increased tariffs introduced under former President Donald Trump’s trade policy platform. The company specifically cited “changes in global trade policy and new or increased tariffs” as a primary factor in reshaping its business strategy.
“We’re navigating a period of profound transformation,” said UPS CEO Carol Tomé. “The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with these changes, we will emerge as an even stronger, more nimble UPS.”
Tariffs Fuel Industry-Wide Shakeup
The Trump-era tariffs, some of which were reinstated and expanded earlier this year following his re-election campaign’s economic push, have significantly disrupted supply chains and made cross-border commerce more expensive. These policies have had a chilling effect on international trade volume, leaving many UPS customers wary of higher costs and unpredictable customs processes. Industry analysts say the delivery service is being hit hard by reduced shipment volume—particularly among exporters and large-scale online retailers—leading to an urgent need to shrink its operational footprint.
UPS currently employs about 490,000 people globally, including roughly 330,000 unionized workers under the International Brotherhood of Teamsters. The newly announced layoffs will primarily affect “operational workforce” positions—those in package handling, delivery, and sorting.
This comes on the heels of a previous round of cuts in 2024, when UPS slashed 12,000 jobs in an earlier effort to curb costs.
Massive Infrastructure Reduction Planned
In addition to layoffs, UPS also revealed it will shutter 73 facilities—both leased and company-owned—across the country by June 2025. The move is part of a broader plan to consolidate its logistical infrastructure and lean into automation and “end-to-end process redesign,” particularly in response to declining package volume from Amazon.
According to the company’s filings, Amazon accounted for 11.8% of UPS’s total revenue in 2024. However, as the e-commerce giant continues to expand its own delivery capabilities through Amazon Logistics, that share is expected to decline further—posing a strategic threat to UPS’s largest customer relationship.
Teamsters Push Back: “Hell of a Fight”
The Teamsters union responded swiftly and forcefully to the layoff announcement. In a public statement, General President Sean O’Brien reminded UPS of its contractual obligation to create 30,000 union jobs under the current labor agreement negotiated in 2023.
“If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way,” O’Brien said. “But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”
O’Brien also alluded to the billions in profits UPS has posted in recent years and called on the company to honor its commitments to the workers who helped deliver those returns.
Financial Forecast in Flux
UPS reported consolidated revenues of $21.5 billion for Q1 2025, a slight dip from $21.7 billion in Q1 of 2024. But despite the modest year-over-year revenue drop, company executives declined to offer forward-looking guidance for the remainder of the year. They cited “current macroeconomic uncertainty,” tariff volatility, and consumer behavior shifts as too unpredictable to reliably project earnings.
Analysts warn that UPS’s move could foreshadow similar cost-cutting measures across the broader shipping and logistics industry, especially as inflation, automation, and geopolitical instability continue to rattle global commerce.
A Crossroads for American Labor and Trade
With international trade policy once again taking center stage in American politics and the 2026 midterms looming, UPS’s announcement is likely to intensify the debate over how U.S. companies should adapt to protectionist policies and whether the working class should continue bearing the brunt of economic restructuring.
As the logistics giant braces for a turbulent year, tens of thousands of workers are left wondering what the future holds—not just for their jobs, but for the industry itself.
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