Get the Facts: How UPS cutting 20,000 jobs globally could impact the economy
The and reduce the amount of volume they deliver for Amazon by more than 50% by June 2026.
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This restructuring marks what the company describes as "the largest network reconfiguration in its history."
UPS currently has around 490,000 employees operating in more than 200 countries. The layoffs would impact a little more than 4% of its workforce.
“I’m sure that Amazon suppliers and the businesses they work with are probably bracing for something to happen,” said Thomas Lambert, an economics professor at the University of Louisville.
In addition to the job cuts, UPS intends to close 73 buildings by the end of June 2025 and said that it may target additional buildings for closure as part of a consolidation plan expected to save $3.5 billion.
However, Lambert says these changes could have a ripple effect on other businesses connected to UPS.
“For every job loss, you know, going back to UPS, 20,000 jobs lost, or what have you nationally — that's probably would be at least another 10,000 jobs lost in the economy," said Lambert.
UPS employs approximately 26,000 people in the Louisville, Kentucky, area. Teamsters Local 89 says at this time, none of the UPS locations in Louisville will be affected by the planned closures.
The International Brotherhood of Teamsters released a statement on X that said the following:
"UPS is obligated to create 30,000 Teamster jobs under our current national agreement. If the company makes any attempt to violate our contract, UPS will be in for a ... fight."
Lambert says these developments are likely part of broader economic shifts.
"Everything I’m seeing and reading — we’re headed towards a recession," said Lambert, “We're probably headed towards a downturn, and many of these large corporations, they use it as an opportunity for restructuring."
UPS says while its building footprint is changing, its record of reliable pickup and delivery is not.
