Trump's Tariffs Trigger Mass Layoffs: UPS To Cut 20,000 Jobs In $3.5B Survival Plan

Shipping giant UPS is slashing 20,000 jobs and shuttering 73 locations by summer's end as Donald Trump's tariff tsunami reshapes global trade, forcing even the mightiest logistics players to adapt or sink.

The delivery behemoth, which handles packages for millions of businesses worldwide, dropped the bombshell alongside first-quarter results showing revenue slipping to £16.04 billion – down 0.7% from last year's figures.

UPS Responds To Trade Winds With Layoffs

'With our action, we will emerge as an even stronger, more nimble UPS,' Carol Tomé, CEO of UPS, said in a statement on 29 April. Tomé explained that this shift would enable UPS to adjust to 'a changing trade environment' and enhance its prospects for sustained expansion.

The logistics firm projected that these reductions would lead to savings of £2.61billion ($3.5 billion) in the year 2025. The company disclosed this with its financial results for the first quarter of 2025.

The report indicated a minor decrease in revenue, settling at £16.04 billion ($21.5 billion) —a 0.7% drop compared to the corresponding period in the prior year. Simultaneously, its adjusted operating profit saw a slight increase of 0.9%, reaching £0.75 billion ($1.7 billion).

Weak Demand And Tariff Uncertainty Force UPS Action

UPS also withdrew its financial projections for the ongoing year, citing that the ambiguity surrounding the consequences of Trump's tariffs prevented the provision of reliable estimates.

'Given the current macro-economic uncertainty, the company is not providing any updates to its previously issued consolidated full-year outlook,' UPS said. The company's supply chain division experienced the most significant downturn in the last quarter, with its revenue sharply declining by almost 15%, largely attributable to the sale of Coyote Logistics.

This initiative to lower expenses follows UPS's earlier communication to investors this year, stating its intention to decrease its business with Amazon by half by the middle of 2026, referencing concerns about profitability.

'This was not their ask,' Tomé said on an investor call in January. 'This was us. This was UPS taking control of our destiny.'

Reorganisation Expected To Conclude By 2027

On 29 April, UPS indicated that the reorganisation efforts might broaden based on upcoming evaluations of its network. For the initial quarter, the company reported £59.68 million ($80 million) in savings alongside £17.16 million ($23 million) in associated expenses. 'These initiatives are expected to end in 2027,' the company said in its 1Q 2025 earnings.

The organisation clarified that it does not classify these linked expenses as typical because each plan encompasses individual and distinct undertakings that could extend across several reporting periods.

Furthermore, these plans are not anticipated to generate additional income, and their scale surpasses regular, continuous activities aimed at improving profitability. These endeavours supplement the usual, continuous efforts focused on boosting business results.

As UPS navigates the complexities introduced by trade shifts and strives for greater efficiency, the long-term effects of these strategic moves on the global logistics landscape and workforce remain a key point of observation.

As brown vans continue rolling through neighborhoods worldwide, the question remains whether UPS is simply adjusting its sails to new trade winds – or battening down hatches for a perfect storm.