UPS Eliminating Thousands of Jobs Amid Building Closures Across the U.S.

United Parcel Service will reportedly cut nearly 20,000 jobs before the end of the year in addition to closing some of its locations.

Why Is UPS Cutting Jobs?

UPS is in the midst of an overhaul both with its workforce and its facilities. The shipping company informed investors late last month that it will eliminate nearly 20,000 of its 490,000 employees.

According to USA Today, UPS has indicated "new or increased tariffs" and "changes in general economic conditions" as reasons behind that move.

In its Q1 earnings report unveiled on April 29, UPS noted a .7% decrease in revenues compared to the same quarter in 2014.

Which UPS Facilities Are Closing?

For now, it appears many of the jobs that will be cut are tied to facilities marked for closure before the end of 2025.

READ MORE: Fast Food Chain Will Close Up To 200 Restaurants This Year

USA Today found 73 leased and owned UPS buildings that are set to close before July 1. Additional UPS locations will close in the following months, bringing the total to 164 buildings.

Locations of the buildings set to close have not been revealed at this time.

Reuters reports the closings are also tied to UPS planning for less shipping and receiving tied to Amazon. The outlet says UPS will reduce "Amazon shipping and delivery volumes by 50%."

UPS Also Had Mass Layoffs In 2024

This makes the second straight year of layoffs for UPS.

According to CNBC, the company announced 12,000 layoffs at the start of 2024. At the time, the layoffs were tied to a drop in both international and domestic shipping volume.

The move was expected to save UPS nearly $1 billion in costs. Entrepreneur.com says the company is projecting to save closer to $3.5 billion with its job reductions and closings in 2025.