Oops Cut 20,000 work

United Parcel Service (UPS) announced on Tuesday that he will reduce around 20,000 jobs and disconnect 73 of its facilities, since the logistical giant lowers the costs under a potential withdrawal of its largest customer, Amazon and broader economic uncertainty.

The move, which corresponds to a reduction of around 4% of the company’s workforce, makes up the first large American company to progress due to the tariffs of the Trump administration with large-scale layoffs in view of the slowdown of trade.

A slowdown of global trade is likely to reduce the need for shipping services between companies and possibly affect package supply companies.

“The world has not been confronted with such enormous potential effects on the trade for more than 100 years,” said CEO Carol Tome during the company’s profit.

The White House teases us “very close” to trade agreements with Asian partners, while Trump meets 100 days in office

UPS reduces its workforce in the middle of the economic uncertainty and the changing business with Amazon by around 20,000 or 4%. (Justin Sullivan / Getty Images / Getty Images)

After UPS has been announced in January, it has made an agreement with its largest customer, Amazon, an agreement to reduce the volume by 50% in the second half of 2026. Amazon made 11.8% of the total turnover of UPS in 2024.

“The measures that we take to rewind our network and reduce the costs in our shop could not be intended,” said Tome.

Last year UPS said that it would reduce its workforce by 12,000 jobs, and added that the expenditure awaits between $ 400 and 600 million in connection with separation and rental cuts in 2025.

Shein drastically increases prices in response to tariffs: report

The two companies reduce the number of Amazon shipments from UPS. (Xavi Lopez/SOPA Images/Light dryet via Getty Images/Getty Images)

UPS also looks like a strong volume down from the China-linked bargain-e-commerce seller Temu and Shein after the United States moved to collect tariffs for goods that were previously under a threshold of $ 800 per retail sale.

In order to keep its customers up to date on tariffs and trade guidelines, UPS has launched a website on which various developments are pursued in the negotiations and offers the opportunity to connect to experts and explore options for managing tariffs.

Get Fox Business on the go by clicking here

UPS also offers a new UPS Global Checkout service that shows the costs for customs fees and tasks on international purchases at the cash register.

Reuters contributed to this report.