UPS plans to cut around 20,000 jobs and close over 70 facilities by June as part of a major reduction in handling Amazon shipments, which will drop by over 50% by mid-2026. CEO Carol Tomé stated these changes aim to make UPS more efficient despite economic uncertainties.

Amazon, UPS’s largest but least profitable customer, prompted this shift after a reassessment of their nearly 30-year partnership. UPS reported Q1 2025 earnings of $1.19 billion ($1.40 per share), surpassing analyst expectations, with revenue at $21.55 billion, also beating forecasts.

The company maintains its full-year revenue outlook of $89 billion. UPS shares saw a slight increase.