The parcel delivery service announced 12,000 layoffs in January 2024 following a substantial year-over-year decline in revenue. The United Parcel Service (UPS) is expected to reduce its workforce by roughly 20,000 during 2025, citing ‘new or increased tariffs’ and ‘changes in general economic conditions in the U.S. or internationally’ for the cuts. UPS announced the layoffs April 29 in its first quarter earnings report, in which the parcel delivery service said it made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago. The shipping company also said it would be closing roughly 164 facilities by the end of the year. Consolidation efforts for UPS come as President Donald Trump’s looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout. In 2024, UPS employed around 490,000 people worldwide, including about 330,000 Teamsters-represented jobs in the U.S. ‘The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,’ Carol Tomé, UPS’s chief executive officer, said in the report. ‘The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.’ For UPS specifically, it cautioned in January that it was expediting its plan to reduce millions of deliveries for its largest customer, Amazon.com, which accounted for 11.8% of its overall revenue in 2024. ‘We are reducing the amount of volume we deliver for Amazon by more than 50% by June 2026,’ Brian Dykes, UPS’ chief financial officer, said in a statement to USA TODAY. ‘Associated with this volume reduction, we are undertaking the largest network reconfiguration in our history. This effort has been combined with our Network of the Future initiative as both will help drive us to a more efficient network.’ The White House responded to reports that Amazon plans to display the share of items’ costs derived from tariffs, calling the move ‘hostile.’ Meanwhile, UPS also announced plans to close 73 leased and owned buildings by the end of June 2025, part of a broader effort to streamline its operations. The closures will involve facilities that are part of UPS’ U.S. Ground operation, where packages are unloaded, sorted, and loaded. The total number of operational closures by the year-end is expected to reach 164, with an anticipated cost saving of $3.5 billion in 2025. Despite the restructuring, UPS forecasted in January a full-year revenue of $89 billion and continues to deliver approximately 22.4 million packages daily, maintaining its position as the world’s largest package delivery firm. The initial job cuts of nearly 12,000 employees announced in January 2024 aimed to save nearly $1 billion amid revenue declines, and the latest layoffs and closures are part of an ongoing strategy to adapt to changing economic conditions and global trade challenges.