April 29 (UPI) -- UPS announced Tuesday that it will cut 20,000 jobs this year to save money due to a reduction in deliveries from Amazon, its top client.
"We expect to reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025," said the company in a statement.
The company currently has about 490,000 employees who work across more than 200 countries, 4% of whom are to be laid off.
The move is part of a consolidation effort is part of its "Network Reconfiguration and Efficiency Reimagined" initiative, which could possibly lead to the closure of more of its buildings this year.
"We continue to evaluate the impact of expected changes in volume on our air network," the company statement added, "We anticipate $3.5 billion of total cost savings will be delivered."
UPS CEO Carol Tome said in the statement that "the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," and with its actions, "we will emerge as an even stronger, more nimble UPS."
The company reported that its cuts are related to the "anticipation of lower volumes from our largest customer," that being Amazon, who had announced in January it would chop its business with UPS by more than half in the second half of 2026.
