Amazon decline trickles down to huge UPS layoff

UPS has announced that an anticipated drop in Amazon deliveries will impact the shipping company's workforce. The company announced Tuesday it was shedding 20,000 workers, CBS News reported.

As tariffs take effect, Americans are showing a lack of interest in paying the 145% tax on goods imported from China — resulting in an expected decline in Amazon purchases. President Donald Trump introduced the tariffs as part of his hardball approach to persuade China to comply with his demand for lower tariffs on goods entering the U.S. from China.

"Canceled freight orders and abandoned freight from China are quickly becoming the norm in the trade war between the U.S. and China, according to supply chain executives, as businesses across U.S. industries put a full stop on container exports, with the tariffs hitting like a ton of bricks," described CNBC news earlier in April.

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According to CBS, the reduction of 20,000 employees is equivalent to a little more than 4% of its 490,000-person workforce.

The company also announced it would be closing 73 of its buildings by the end of June 2025. There may be further building closures, the company said.

The goal is to achieve higher profits, executives said during a Tuesday morning earnings call.

"These actions will enable us to expand our U.S. Domestic operating margin and increase profitability," said Brian Dykes, the chief financial officer of UPS during the call.

The company said that the consolidation plan is expected to save them $3.5 billion.

UPS also gave a nod to Amazon in the Tuesday regulatory filing, saying that the cuts are in "connection with our anticipation of lower volumes from our largest customer."

This isn't the first announcement of layoffs. The last round occurred in March, when the company announced that hundreds of workers in multiple states would be laid off.

OPB reported that there would be 98 UPS workers in Charlotte, North Carolina, laid off by March 31. An additional 65 UPS workers in Hialeah, Florida, would be laid off by April 27, and an undisclosed number of UPS workers in Portland, Oregon, would be laid off by July 1.

Read the full report here.