UPS Slashing 20,000 Global Jobs by 2025, Leaving Workers in a Lurch
Worldwide workforce reduction by 20,000 for UPS - Global package delivery giant, UPS, announces plans to eliminate 20,000 positions across its global workforce.
Get ready to see some shakeups at UPS, as they plan to axe around 20,000 positions from their workforce by the end of 2025. With approximately 490,000 employees worldwide at the end of 2024, this move could hit hard. Additionally, 73 leased and owned facilities are set to shut down by June.
In a statement, UPS CEO Carol Tome revealed these changes are part of a strategy to adapt to the ever-changing trade environment, with a nod to the uncertainty stirred up by President Donald Trump's trade policies.
The first quarter of 2025 saw UPS reporting a net income of around $1.2 billion, up 7% compared to the same period in 2024. Revenue dipped slightly to $21.5 billion, down 0.7%.
Part-time workers, who make up the majority of UPS's labor force, may face increased instability, while full-time employees could endure some uncomfortable conditions, like sleeping in cars between shifts or sweltering in delivery trucks without air conditioning.
The job losses coincide with a broader corporate austerity trend, mirroring government-led cutbacks such as the elimination of over 100,000 federal jobs and tariff-driven consumer price hikes under the Trump administration. This economic strain, compounded by cuts to social programs, could leave many workers feeling the pinch.
Interestingly, these job losses follow a trend of soaring corporate profits, suggesting a prioritization of shareholder returns over labor rights. This seems especially evident in the appointment of former UPS/Amazon executive David Keeling to dismantle OSHA safety regulations, a move that was tacitly endorsed by the Teamsters union leadership.
- Carol, the UPS CEO, expressed uncertainty about her ability to do what's necessary to adapt to the ever-changing trade environment.
- With the job losses at UPS contributing to a broader corporate austerity trend, industry experts are predicting that income for many workers may reduce significantly by 2025.
- In the finance and business sectors, the job losses at UPS could have a ripple effect, potentially impacting related industries such as retail and logistics.
- As UPS continues to prioritize profitability over labor rights, some workers may be forced to take up multiple jobs, like driving for UPS during the day and working in another industry at night – a reality that upsets Carol as she considers these possible consequences.