United Parcel Service (UPS) has announced that it will eliminate 20,000 jobs worldwide in response to a significant decline in shipping volumes, particularly shipments from Amazon, one of its largest customers. The decision is seen as a strategic realignment aimed at improving cost efficiency amid shifting market conditions, automation, and changes in consumer demand.
UPS cited a dramatic slowdown in e-commerce deliveries from Amazon as a core reason for the massive layoffs. The company revealed that Amazon’s contribution to its revenue has been shrinking steadily over the past two years. In 2020, Amazon accounted for about 13.3% of UPS’s revenue. By late 2024, that figure had dropped to approximately 8.2%, and projections for 2025 suggest further declines as Amazon increasingly leans on its in-house logistics network.
Carol Tomé, UPS CEO, addressed the changes in a recent earnings call: “We are transforming our network to better match today’s volume realities. While these decisions are never easy, they are necessary to protect the long-term health of the business.”
Jobs affected by the job cuts
According to internal sources and company filings, the 20,000 job cuts will occur primarily in the United States, with a smaller number of reductions overseas. The impacted roles span both corporate and operational functions, but hourly package handlers and drivers make up the largest portion of the layoffs.
Below is a breakdown of the affected jobs:
1. Warehouse and Package Handlers (Approximately 11,000 Jobs)
These are employees responsible for sorting and loading packages at UPS’s hubs and facilities. With fewer Amazon shipments and lower package volumes across the board, UPS no longer requires as many handlers to keep up with demand. Many of these roles were added during the pandemic boom when online shopping soared.
2. Delivery Drivers (Approximately 4,000 Jobs)
UPS is also cutting a significant number of delivery driver positions. While these roles typically come with higher pay and union protection, the company said many of the affected drivers were part of seasonal or contract-based employment.
UPS noted that reductions are based on route optimizations and decreasing daily package averages.
3. Corporate Staff and Administrative Roles (3,000 Jobs)
In addition to frontline workers, UPS is trimming corporate staff, including HR personnel, IT support, marketing staff, and logistics analysts. These layoffs primarily affect UPS’s headquarters in Atlanta and satellite offices in New Jersey and Chicago.
While not directly tied to Amazon shipments, these roles are part of the company’s broader cost-cutting and digital transformation plans. UPS aims to centralize more functions and rely more heavily on automation and third-party contractors for non-core services.
4. Supervisory and Middle Management (1,500 Jobs)
Middle management in logistics operations such as supervisors overseeing regional hubs and shift managers are also facing cuts. As UPS consolidates its physical footprint and automates sorting operations, many managerial roles have become obsolete.
5. Air Cargo and Pilots (500 Jobs)
Though UPS Airlines is a critical part of its global logistics network, the company announced a small number of layoffs affecting cargo operations, including some pilot roles and ground crew positions. Most affected pilots are either nearing retirement or are in temporary roles created during the pandemic-era shipping boom.
This move is part of a broader attempt to rationalize air freight capacity in line with reduced international volume from key clients like Amazon and Alibaba.
Amazon has invested heavily in its own delivery infrastructure over the past decade. With the growth of Amazon Logistics, the retail giant has been steadily reducing its reliance on traditional carriers like UPS and FedEx.
