UPS Layoffs 2025: How Amazon’s Pullback and Tariffs Are Shaking Things Up

What’s Going On with UPS (United Parcel Service) and Amazon?

Hey there! If you’ve been scrolling through the news in April 2025 about UPS Layoffs 2025, you might’ve caught wind of some big changes at UPS. On April 29, 2025, the shipping giant dropped a bombshell: they’re cutting 20,000 jobs and closing 73 facilities by June 2025. That’s a lot of people and places affected, and the main reason? UPS layoffs Amazon—yep, Amazon, their biggest customer, is scaling back shipments big time. Add in some hefty new tariffs from President Trump, and it’s a perfect storm for UPS layoffs 2025. Let’s break it down in a real, human way, connect the dots, and see what this means for workers, shoppers, and the economy.

Why Is UPS (United Parcel Service) Cutting 20,000 Jobs?

So, what’s driving these UPS layoffs? It’s a mix of business decisions and global trade chaos. First off, UPS decided to cut Amazon shipments by 50% by mid-2026. Amazon’s been their top customer, making up about 12% of UPS’s revenue in 2024. But here’s the kicker: a lot of those deliveries weren’t making much money. UPS CEO Carol Tomé said, “Amazon is our largest customer, but it’s not our most profitable customer.” So, UPS is choosing to focus on higher-profit work instead.

Then there’s the bigger picture: Trump’s tariffs. In 2025, he’s slapped a 145% tariff on Chinese imports and killed a rule called “de minimis,” which let small shipments (under $800) come into the U.S. without taxes. These changes are making shipping more expensive and slowing down global trade. Tomé even said, “The world hasn’t faced such enormous potential impacts to trade in more than 100 years.” That’s huge, and it’s hitting UPS hard, especially since they handle about 400,000 imported parcels daily.

These UPS 20000 jobs cuts—about 4% of their 490,000 global workforce—are part of a plan to save $3.5 billion in 2025. They’re also closing 73 buildings, with possibly more to come, as part of a massive “Network Reconfiguration” to make the company leaner and more flexible.

How Does Amazon Fit In?

Now, let’s talk about Amazon UPS layoffs. Amazon’s not forcing UPS to cut jobs directly, but their reduced shipments are a big trigger. Back in January 2025, UPS and Amazon agreed to halve their delivery volume, a move UPS requested to focus on profitability. An Amazon spokesperson said, “Due to their operational needs, UPS requested a reduction in volume, and we certainly respect their decision.”

Amazon’s also dealing with its own challenges. They’re cutting 14,000 managerial jobs in 2025 to save up to $3.6 billion, and their low-cost store, Amazon Haul, is getting hit by those same tariffs. Plus, Amazon’s been building its own delivery fleet, which means they rely less on UPS Amazon jobs for shipping. This shift is part of why UPS is rethinking its strategy.

What’s the Deal with UPS Earnings?

Let’s check the numbers. In their Q1 2025 UPS earnings report, released April 29, UPS posted $21.5 billion in revenue, down slightly from $21.7 billion last year. But they beat Wall Street’s expectations, with an adjusted profit of $1.49 per share (analysts predicted $1.44) and revenue topping forecasts of $21.06 billion. Operating profit grew 3.3% to $1.7 billion, and U.S. domestic revenue even rose 1.4% thanks to higher prices per package.

Still, UPS isn’t feeling super confident. They pulled their full-year revenue forecast (previously $89 billion) because of “macroeconomic uncertainty” from tariffs and Amazon’s pullback. They’re expecting a 9% drop in daily U.S. package volume and a second-quarter operating margin of 9.3%, which is lower than the double-digit margins investors love.

How Are Workers and Unions Responding?

These UPS layoffs 2025 are hitting real people—drivers, sorters, and other “operational” workers, not just managers. With 490,000 employees worldwide, including 330,000 Teamsters union members in the U.S., the cuts affect about 4% of the workforce. The Teamsters aren’t taking it lightly. Union president Sean O’Brien said, “If UPS wants to downsize corporate management, fine. But if they try to cut good-paying Teamsters jobs, they’re in for a hell of a fight.” UPS promised to honor their union contract, but tensions are high.

Last year, UPS cut 12,000 jobs, mostly in management, so this new round feels like another gut punch for workers. The closures of 73 facilities—part of a plan to shut 164 by year-end—mean entire communities could feel the ripple effects, from local economies to families counting on those UPS Amazon jobs.

What’s the Bigger Economic Picture?

Zoom out, and it’s clear UPS layoffs Amazon are part of a bigger story. Trump’s tariffs, especially the 145% on Chinese goods starting May 2, 2025, are causing chaos. Small businesses that source from China are freaking out, and even big players like UPS are feeling the squeeze. UPS’s China-to-U.S. trade lane, which makes up 11% of their international revenue, is their most profitable, so tariffs are a direct hit.

Other companies are struggling too. Amazon’s competitors, like Temu and Shein, are raising prices because of tariffs, and Amazon Haul’s low-cost model is under pressure. Meanwhile, UPS’s rival FedEx warned of a slowdown in March, and companies like Mack Trucks and Volvo are cutting jobs due to tariff-related “market uncertainty.” It’s a domino effect—UPS layoffs, Amazon’s job cuts, and global trade tensions are all connected.

For shoppers, this could mean higher prices and slower deliveries. UPS handles 2% of its daily packages as imports, so tariffs might jack up costs for your online orders. UPS is trying to help customers by offering tools like UPS Global Checkout to show duties and fees upfront, but the reality is, your Amazon packages might not be as cheap or fast as they used to be.

Why Does This Matter to You?

Whether you’re a UPS worker, an Amazon shopper, or just someone keeping up with the news, these UPS 20000 jobs cuts hit close to home. They’re a reminder that global trade and big business decisions ripple out to real people. If you’re waiting for that Amazon package, you might notice longer wait times or higher prices. If you’re in a town with a UPS facility, those closures could hurt local jobs. And if you’re looking for UPS Amazon jobs, the hiring landscape just got tougher.

But there’s hope too. UPS is aiming to come out “stronger and more nimble,” and Amazon’s still a giant in e-commerce. The economy’s always shifting, and companies like UPS are betting on automation and smarter networks to bounce back. For now, though, it’s a bumpy ride.

What’s Next for UPS and Amazon?

Looking ahead, UPS layoffs 2025 are just the start of a bigger overhaul. Their “Network Reconfiguration and Efficiency Reimagined” plan runs through 2027, aiming to make the company leaner with automation and fewer low-profit deliveries. They’re learning from closing 11 buildings in 2024 and using that as a blueprint for the 73 (and possibly 164) closures coming up.

Amazon, meanwhile, is doubling down on its own delivery network and cutting costs elsewhere. Their 14,000 job cuts show they’re not immune to the economic crunch, but tariffs might actually give them an edge over competitors like Temu by raising costs for Chinese

Chinese sellers. Still, Amazon Haul’s direct-from-China model could face higher prices, which might push shoppers to look elsewhere.

As for the economy, tariffs and trade wars are keeping everyone on edge. UPS’s small- and medium-sized business customers, many of whom rely on Chinese goods, are scrambling—some raising prices, others moving manufacturing elsewhere. The uncertainty’s so thick that UPS won’t even update its 2025 forecasts.