UPS said on Tuesday that it would reduce 20,000 jobs this year as part of a long -term plan to reduce costs and support profits.
The cuts come at a time when President Trump’s tariff pays some UPS customers to charge fewer goods. The company said, “The total economic uncertainty” prevented it from updating its expectations to obtain revenues and profits for 2025.
UPS has already reduced 12,000 jobs last year. It now has about 490,000 employees, many of whom are members of the Teamsters Federation. In the latest discounts, the company said it would turn “operating” employees, or those who sort or provide packages. UPS also said it would close 73 buildings by the end of June.
UPS tries to improve their profit margins, partly by reducing costs and getting rid of parts of their business that does not make money. The company said that many delivery operations to Amazon are the largest agent, not profitable. It plans to reduce in half the size of the packages it offers to Amazon by the middle of next year.
In all, UPS plans to reduce costs by $ 3.5 billion this year. Most of this amount of cuts in jobs and building closure is expected, but the company also expects savings to reduce the number of hours of its employees. UPS has 412,000 employees per hour, about half of them part -time.
In 2023, the Teamsters and UPS team agreed to a five -year work contract that included the wages that were much higher than union delivery companies. Comment on the job cuts on TuesdayThe General President of the Teamsters team, Sean M. said. O’Brien, the contract requires UPS to create 30,000 jobs from the Teamster team.
“If UPS wants to continue to reduce the volume of corporate management, the Teamsters team will not stand on its way,” Mr. O’Brien said in a press release. “But if the company intends to violate our contract or make any attempt to continue the jobs of a good -wage Teamsters team, it will be UPS in a battle.”
Based on a call with investors on Tuesday, UPS CEO, Carroll Tommy, said that Mr. Trump’s commercial policies were particularly viscous for small and medium -sized companies that buy goods from China. The President raised the tariffs by up to 145 percent on many goods imported from this country.
Ms. Tommy said that the smaller companies, which did not have the finance that he stored before the definitions enter, now says, “Wow, how will we deal with this cost that will come on our way?”
Ms. Tommy said that the delivery of China to the United States was more commercial in UPS and responsible for 11 percent of the company’s international revenue. The company said it expects its work to decrease in the states to the United States.
But Mrs. Tommy also said that UPS would be able to respond to any transformation in supply chains caused by the definitions. In the first period of Mr. Trump, Chinese exports fell to the United States, but trade grew between China and the rest of the world, noting that UPS international works also grew in that period.
“We can move to where supply chains move,” Ms. Tommy said.