UPS says it will be cutting tens of thousands of jobs to reduce costs.
The company said that 30,000 layoffs were because it plans to deliver fewer Amazon packages, The New York Times reported. UPS officials last year said the Amazon business was not profitable, despite Amazon being its largest customer.
The company has also seen a decrease in packages sent from China after President Donald Trump imposed tariffs on lower-value shipments, the Times reported.
The jobs that are being cut are “operational positions” or those that are primarily delivery and warehouse workers. The jobs will be eliminated through attrition and voluntary separation.
In addition to the job cuts, 24 locations are slated to close in the first half of this year, The Washington Post reported.
UPS had about half a million employees at the start of last year, with about 300,000 of them Teamsters union members.
Union spokesperson Kara Deniz told the Post that the members will reject the company’s buyout offer, saying it was “disrespectful.”
“We’re perfectly happy for UPS to realize growth and cost savings on the backs of corporate managers so long as they uphold their contractual commitments to our members and reward the Teamsters who actually make the company run,” Deniz said.
UPS already cut 62,000 jobs last year by laying off full-time drivers, warehouse employees, managers and seasonal workers, the Times reported. It also closed 93 facilities and added automation in 57.
At the time, Amazon spokesperson Kelly Nantel said, “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision.” The company said it had offered to increase its volume with UPS.
The cuts are expected to save $3 billion, UPS Chief Financial Officer Brian Dykes said, according to the Post.
In addition to the cuts, the company said it has retired its fleet of MD-11 cargo planes, the type of aircraft that crashed in November, killing three crew members and 12 others on the ground. The aircraft’s retirement cost UPS $137 million, according to the Post.
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