United Parcel Service (UPS) on Tuesday (April 30) confirmed it will cut 20,000 jobs and shut down 73 facilities across the U.S. This move isn’t just about numbers, it’s a reflection of shifting priorities, shrinking margins, and a broader restructuring strategy. UPS layoffs follow layoffs by Amazon and Intel this year.
Let’s unpack what’s happening with UPS, how this fits into a bigger corporate trend for mass layoffs.
UPS Layoffs: Why is the company eliminating 20K jobs?
The decision by UPS to eliminate 20,000 positions comes on the heels of two major shifts:
- Amazon Pullback: UPS is reducing its delivery volume from Amazon by a staggering 50%. Amazon was previously UPS’s largest customer. But UPS claims this volume was largely unprofitable, involving lower-margin shipments from fulfillment centers.
- Margin pressure: For the second quarter, UPS is projecting an operating margin of around 9.3%, falling short of the double-digit margins typically favored by investors. Its core U.S. business is expected to experience a 9% decline in average daily package volume and a modest drop in revenue.
- Trump-Era Tariffs and Trade Uncertainty: With President Trump's recent 145% tariffs on Chinese goods, global trade routes are in flux. UPS, heavily dependent on cross-border commerce (especially China), is feeling the pinch. China-to-U.S. lanes accounted for 11% of UPS’s international revenue in 2024, and now face significant uncertainty.
In an earnings call, UPS CEO Carol Tomé summed it up saying, “The world hasn't been faced with such enormous potential impacts to trade in more than 100 years.” UPS aims to shelter profits by cutting $3.5 billion in 2025 with these job cuts.
UPS Layoffs: Who’s affected and what’s the plan?
- Jobs Lost: 20,000
- Facilities Closing: 73 across the U.S.
- U.S. Workforce Size: 406,000 workers (75% unionized)
- Cost-Cutting Goal: $3.5 billion in savings by 2025
- Forecast Operating Margin (Q2 2025): ~9.3% (below investor expectations)
Despite the cuts, UPS insists it will honor its labor contracts, particularly the agreement with the Teamsters, which mandates the creation of 30,000 jobs. The union, however, is pushing back. Teamsters President Sean O'Brien warned:
“If the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.” According to Google Finance data,, UPS stock closed in the red on Tuesday after the announcement, with rival FedEx also dipping , reflecting broader industry anxiety.
Amazon’s own layoffs: Trimming the fat to stay lean
Ironically, the UPS cuts come shortly after Amazon announced plans to lay off 14,000 managers, about 13% of its global managerial workforce by early 2025. The e-commerce giant is aiming to cut annual costs by $2.1–$3.6 billion.
So why is Amazon downsizing its leadership ranks?
- Cost Control: Mid- to senior-level managers at Amazon can earn from $30,000 to $311,000 per year. Cutting these roles is a direct path to savings.
- Automation and AI: With growing investments in tech, fewer human managers are needed.
- Post-Pandemic Corrections: Amazon's workforce ballooned from 798,000 in 2019 to over 1.6 million in 2021, and it's now in correction mode.
- Return-to-Office Pressure: Amazon’s office mandates are also seen as a subtle nudge for voluntary attrition.
Amazon CEO Andy Jassy is focused on increasing the ratio of individual contributors to managers, aiming to simplify decision-making and boost agility. “When you add a lot of people, you end up with a lot of middle managers... they want to put their fingerprint on everything,” Jassy told Bloomberg earlier.
This layoff trend is not isolated. Big tech is moving away from bloated management structures. Meta, Google, and now Amazon are all prioritizing leaner teams with flatter hierarchies.
Intel’s Massive Layoffs: Streamlining to Compete
Joining UPS and Amazon in the layoff wave is Intel Corporation. The chipmaker recently announced it will cut 20% of its global workforce — affecting roughly 22,000 employees. The move comes under the leadership of new CEO Lip-Bu Tan, who aims to refocus Intel on:
- AI and Chip Manufacturing: Where competitors like Nvidia and AMD have surged ahead.
- Eliminating Bureaucracy: Intel’s management layers have stifled innovation and slowed time-to-market.
Tan has been blunt about the internal challenges, promising "tough decisions" to bring Intel back to its engineering-first culture. The cuts will allow Intel to reinvest in R&D, simplify its org chart, and potentially reclaim lost market share in the high-stakes AI and semiconductor space.
Layoffs: The new normal?
Whether it's UPS trimming operations, Amazon flattening management, or Intel refocusing engineering, one message is clear: Corporate America is resetting. Here’s what’s driving it:
| Factor | Impact on Companies |
| Trade Tensions | Higher costs, disrupted supply chains |
| Profitability Pressure | Shareholders demand leaner operations |
| Automation & AI | Reduces need for mid-level management |
| Post-COVID Adjustments | Companies recalibrating overhiring from 2020–2021 |
| Rising Input Costs | Fuel, labor, tariffs impacting margins |
For investors, this signals short-term uncertainty, but possibly longer-term margin improvements. For workers, particularly, it is a harsh reality check. In the coming months, more companies may follow suit as global pressures mount. For now, the focus seems to be on streamlining operations, reducing unprofitable work, and preparing for a leaner, more tech-driven economy.
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