The American messenger and package delivery group UPS will eliminate 20,000 positions worldwide in 2025, just months after announcing a downward revision of a contract with Amazon, its main client, as reported by Afp.
The logistics company announced on Tuesday that it plans to "reduce its operational workforce by approximately 20,000 positions" during the year, as well as close "73 leased and owned buildings by the end of June 2025," coinciding with the release of its quarterly results.
UPS employs approximately 490,000 people in total, according to its website.
At the end of January, UPS had announced an expected decline in its revenues in 2025, after reaching an agreement with its largest client, Amazon, to reduce its volume by over 50% by June 2026. Amazon represented nearly 12% of UPS's revenues, a level deemed too high by the company.
At that time, UPS stated that it would undergo a reorganization that would lead to closing up to 10% of its facilities, reducing the size of its vehicle and aircraft fleets, and downsizing its workforce, although the number of affected employees had not been specified yet.
From January to the end of March, the Atlanta-based company (Georgia) reported revenues of around 20 billion euros (a -0.7% change from the previous year), exceeding analysts' expectations as per Factset.
However, the net profit stood at around 1 billion, a 6.6% increase, also surpassing analysts' forecasts.
Given the current macroeconomic uncertainty, the company stated that it will not provide any updates on its annual forecasts.
In pre-market trading before the New York Stock Exchange opening, the stock was up by 1.1%.