UPS Says It Will Cut 20,000 Jobs in Efficiency Drive

UPS said Tuesday that Woudd reduced 20,000 jobs this year as part of a long -term plan to reduce costs and strengthen profits.

The cuts occur when President Trump’s rates are taking some UPS customers to send fewer products. The company said that “macroconomic uncertainty” prevented him from updating his income and profits forecasts by 2025.

UPS already reduced 12,000 jobs last year. It now has about 490,000 employees, many of whom are members of the Teamsters Union. In its last cuts, the company said it would throw “operative” employees, or those who classify or deliver packages. UPS also said it would close 73 buildings at the end of June.

UPS has been trying to improve its profit margins, partly reducing costs and eliminating parts of their business that do not earn money. The company has said that many of the deliveries made for Amazon, its biggest client, are not profitable. Plan to cut in the middle of the volume of packages it offers for Amazon in the middle of next year.

In total, UPS plans to reduce costs by $ 3.5 billion this year. Most of that sum is expected to come from employment cuts and buildings, but the company also anticipates that SAAVings reduce the number of hours that their employees work. UPS has 412,000 employees per hour, approximately half or that are part -time.

In 2023, the Teamsters and UPS agreed to a five -year employment contract that included salaries that were significantly higher than in nonions delivery colleagues. When commenting on employment cuts on Tuesday, the general president of the Teamsters, Sean M. O’Brien, said the contract requires that UPS believes 30,000 jobs in the star team.

“If UPS chickens will continue to redirect corporate management, Teamsters won on the way,” O’Brien said in a press release. “But if the company intends to violate the contract or make any attempt to pursue well -paid teams, UPS will be in a great fight.”

A UPS spokesman said the company would adhere to the contract.

In a call with investors on Tuesday, the executive director of UPS, Carol Tomé, said that Mr. Trump’s commercial policies were particularly weakening for small and medium enterprises that buy China products. The president has raised tariffs up to 145 percent in many imported goods from that country.

Mrs. Tomé said that smaller companies, which did not have the financial Witwithal to stock up before the tariff toks effect, now being saying: “Wow, how are we going to handle this increase in costs that comes to us?”

Mrs. Tomé said that China’s deliveries to the United States were the most profitable commercial lane of UPS and 11 percent responsible for the company’s international income. The company said that its business from China to units would decrease.

But Mrs. Tomé also said that UPS could respond to any change in supply chains caused by tariffs. In Mr. Trump’s first mandate, Chinese exports to the United States decreased, but trade grew between China and the rest of the world, he said, and pointed out that UPS international businesses also grew in that period.

“We can move where the supply chains move,” Tomé said.