UPS has announced plans to cut 20,000 jobs and close over 70 facilities as part of a strategy to reduce its reliance on Amazon, which is its largest customer but not the most profitable. CEO Carol Tomé stated that these actions are crucial for the company's future amidst an uncertain macro environment. In January, UPS reached an agreement to cut its Amazon shipment volume by 50% by mid-2026. In its recent financial report, UPS showed earnings of $1.19 billion and revenue exceeding expectations, highlighting a stronger than anticipated performance despite restructuring efforts.
UPS is looking to slash about 20,000 jobs and close more than 70 facilities as it drastically reduces the amount of Amazon shipments it handles.
The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”
Amazon is our largest customer but it's not our most profitable customer. Its margin is very dilutive to the U.S. domestic business.”
The company earned $1.19 billion in the quarter ended March 31, surpassing analysts' expectations with revenue totaling $21.55 billion.
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