UPS to Cut 20,000 Jobs in 2024 Amid Automation Push and Amazon Scale-Back
UPS has announced plans to slash 20,000 jobs this year – roughly 4% of its global workforce – as part of a broader strategy to streamline operations through automation and reduce its reliance on business with Amazon.
In a statement on Tuesday, the logistics giant clarified that the job cuts are not linked to recent tariff developments but are instead driven by technology upgrades and a pre-existing decision to reduce its Amazon-related deliveries. In January, UPS outlined a “glide down” strategy aimed at halving its Amazon business by mid-2026. CEO Carol Tomé reaffirmed that most of the Amazon volume being shed is “not profitable for us, nor a healthy fit for our network.”
During the most recent quarter, UPS saw its package volume from Amazon drop by 16% – a steeper decline than anticipated. As part of the restructuring, the company will shutter 73 U.S. facilities by the end of June.
The job reductions are also linked to increased automation across UPS operations. The company plans to automate sorting, labeling, and truck-loading processes in 400 facilities, which will reduce its reliance on manual labor. “With this reconfiguration, we will also lessen our dependency on labor,” Tomé said.
The Teamsters union, which represents over 300,000 UPS hourly workers, issued a strong warning in response. “If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way,” said union president Sean O’Brien. “But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”
UPS spokesperson Glenn Zaccara assured that the company remains committed to honoring its labor agreements.
Though UPS is navigating uncertainty tied to tariffs—particularly those imposed on Chinese imports—it maintains that the current job cuts are unrelated. Still, CEO Tomé acknowledged the unease among customers involved in U.S.-China trade. “Candidly, there’s so much uncertainty around the China orders,” she said. “We know what’s been announced. We don’t know actually if it will happen, and we don’t know if it will stick.”
Given the dual pressures of automation and reduced Amazon volume, UPS anticipates a dip in revenue in the second quarter compared to the same period last year. While the company is maintaining its full-year financial forecast for now, Tomé hinted that adjustments may be made depending on economic conditions in the second half of 2024.
