Job Cuts Coming To UPS

The shipping business has been booming for the last several years. Many people have swapped shopping in person in stores for amazon and store websites which will be delivered to their house. 

Get our free mobile app

Ordering online saves time and sometimes it can save money. But one would think that those who are responsible for delivering the packages, their business must be booming.

It seems that really isn’t the case with the announcement this week that UPS will be cutting possibly as many as 20,000 jobs this year. And this isn’t the first reduction in force for the global shipping company, according to USA Today in January of 2024, 12,000 jobs were cut around the world. 

What Is About To Happen?

UPS says they will be closing over 70 company owned and leased buildings and properties by the end of June and the total is expected to rise to around 160 or more by the end of the year.  

Part of this move comes on the heels of UPS saying they’re going to reduce their amazon deliveries by 50% by June of next year. The company says that their deliveries for amazon accounted for almost 12% of the revenue in 2024. 

Who Will This Affect?

I talked with a couple of different drivers recently who told me that most of the jobs lost would be middle management positions that tend to be redundant and part-time positions that are being eliminated by an automated process. 

One driver told me that the contract that covers the part-time employees says they must be offered positions in other locations.  

These cuts are expected to save UPS 3.5 billion dollars this year.