UPS announced that it will lay off 20,000 workers and close some facilities as part of its efforts to reduce shipments for Amazon.
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00:00Now we're going to turn to UPS announcing layoffs for 20,000 workers and the closing of some facilities.
00:06Rebecca Jarvis is back with the big picture. Good morning again, Rebecca.
00:09Yeah, nice to see you, Michael. And these are big job cuts coming to UPS.
00:12The company announcing that they will lay off those 20,000 workers and close a number of facilities
00:17as it dramatically reduces shipments of Amazon packages, something that's been in the works for quite some time.
00:24Like so many companies recently, though, UPS also saying it won't be able to forecast future guidance
00:29given the current macroeconomic uncertainty with tariffs.
00:33Railroad companies, trucking, airline and shipping companies have all felt significant slowdowns recently
00:39with U.S. companies effectively sitting on their hands waiting to see how long
00:43and how impactful President Trump's tariffs will be on their businesses.
00:48Shippers experienced this surge in traffic early in the year as U.S. businesses race to get ahead of the tariffs
00:53and stockpile merchandise and supplies. And now we have this ongoing uncertainty.
00:58The more of it that we see, the longer it lasts, the more concerned economists are
01:03that it will lead to further job cuts at all sorts of companies, Robin.
01:07Okay, and we're going to have more from you in just a little bit.
01:09Yes.
01:09Okay, Rebecca, thanks.