UPS to cut 20,000 jobs after Amazon breakup

United Parcel Service (UPS) said Tuesday it is cutting 20,000 jobs this year, after deciding in January to reduce the amount of packages it delivers for Amazon, its biggest customer.

UPS, which has nearly 490,000 employees, also expects to close 73 facilities this year. Last year, it closed 11 buildings and cut 12,000 jobs, mainly managerial roles.

In January, UPS announced that it had reached a deal with Amazon, which accounted for about 12 percent of UPS's revenue, to lower its volume by more than 50 percent by the second half of 2026.

Executives at the delivery company said it is going to be less dependent on labor, which includes adding automation to its facilities including label application, as well as loading and unloading trailers.

UPS CEO Carol Tomé said in a statement on Tuesday that actions taken by the company to reconfigure its network and reduce costs across its business "could not be timelier," considering the uncertainty in the macroeconomic environment. Tariffs are a major point of uncertainty, she said.