UPS is set to reduce its workforce by 20,000 positions this year due to a decrease in demand from Amazon.

UPS plans to eliminate about 20,000 jobs and close 73 facilities in the U.S. by mid-2025 as part of a strategy to reduce its Amazon volume by over 50%. This "Network Reconfiguration" aims to align capacity with declining demand and is expected to yield $3.5 billion in savings. The company noted significant drops in Amazon deliveries, focusing instead on more profitable packages. UPS will automate its operations further, with 64% of its volume processed through automated hubs, as it navigates this major restructuring.