The United Parcel Service is expected to cut 20,000 jobs and 73 buildings by late 2025 in an attempt to become “more nimble,” according to a late April announcement. 

UPS announced the layoffs on April 29th as part of its first quarter earnings report. This announcement comes after the company’s plan to reduce its deliveries for Amazon – a partnership which brought in 11.8% of UPS’s overall revenue in 2024. 

The 20,000 job cuts will be accompanied by the closure of 73 leased and owned buildings by the end of June 2025. UPS expects that the reduction in overall business reach will reduce the company’s expenses by $3.5 billion. This cost saving initiative has been dubbed “Network Reconfiguration and Efficiency Reimagined,” and is expected to last until 2027, reported Caller Times.

“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” said Carol Tomé, UPS’s chief executive officer. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”

“We are continuing to review our network and may identify additional buildings for closure,” the business wrote in a statement. 

The company has pointed at “new or increased tariffs” and “changes in general economic conditions in the U.S. or internationally” for the job and building cuts.