UPS announced Tuesday it would lay off 20,000 workers this year, despite beating first-quarter profit estimates, as the shipping giant expects a decline in deliveries after cutting its shipments for Amazon in half earlier this year.
Read the full story on Forbes: https://www.forbes.com/sites/tylerroush/2025/04/29/ups-to-cut-20000-jobs-in-2025-after-slashing-amazon-shipments/
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Read the full story on Forbes: https://www.forbes.com/sites/tylerroush/2025/04/29/ups-to-cut-20000-jobs-in-2025-after-slashing-amazon-shipments/
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NewsTranscript
00:00UPS announced Tuesday it would lay off 20,000 workers this year, despite beating first-quarter
00:06profit estimates, as the shipping giant expects a decline in deliveries after cutting its
00:11shipment for Amazon in half earlier this year.
00:15In its first-quarter earnings report, UPS announced it expects to save $3.5 billion
00:19in 2025 after cutting 20,000 jobs and closing 73 leased-in-owned buildings by the end of
00:26June.
00:26The layoffs and building closures follow what UPS said is, quote, anticipation of lower
00:31volumes from our largest customer, meaning Amazon, which UPS announced in January would
00:36have its shipping volume with the company cut in half by 2026.
00:40At the time, UPS projected a decline in revenue for 2025 as CEO Carol Tomei said it was, quote,
00:48time to step back for a moment and reassess our relationship with Amazon.
00:51According to UPS, Amazon shipments accounted for 11.8% of the company's overall revenue
00:57in 2024.
00:59UPS reported first-quarter revenue of $21.5 billion, beating analysts' expectations by
01:05approximately $500 million, according to FactSet.
01:08Still, the shipping giant pulled its full-year guidance, despite earlier forecasting revenue
01:13of $89 billion for its current fiscal year, citing the, quote, current macroeconomic uncertainty.
01:20Tomei said in the company's 2024 fourth-quarter earnings call, quote, the company's decision
01:26to reduce shipment volume from Amazon will allow UPS to expand its profit margins.
01:31Amazon is our largest customer, but it's not our most profitable customer.
01:35For more on this subject, read Ty Roosh's article on Forbes.com.