Ups to Slash 20K Jobs, closed many facilities due to the low delivery processes in Amazon amid Trump tariff – United Part Service (NYSE: UPS), Amazon.com (Nasdaq: Amzn)
United Parcel Service Inc. UPS She revealed her intentions to lay off 20,000 employees and stop operations in 73 establishments. This decision is due to a significant decrease in delivery operations Amazon.com Inc. amznHer primary agent, and the ongoing repercussions of the president Donald Trumptariff.
What happenedUPS planning to reduce 20,000 jobs and close 73 facilities. This step is the result of a reduction in planning for Amazon delivery and the effect of President Trump’s continued tariff. Functional cuts are part of a large -scale operational restructuring that aims to reduce costs and enhance efficiency. “Because of their operational needs, UPS requested a decrease in size and we definitely respect their decision,” an Amazon spokesman said.
Sean OperationThe General President of the teams said that UPS is bound to create 30,000 jobs as part of its current main national agreement. He warned that any violation of this agreement or trying to waive the jobs obtained hard will lead to a severe violent reaction.
In response, UPS confirmed its commitment to the contract. The company currently has 406,000 employees in the United States, with more than 75 % represented by unions.
Why do it matter: The announcement of cuts in jobs and the closure of the facility comes in the wake of the UPS Q1 2025 results, which were a mixed bag. The company announced a decrease in unified revenue by 0.7 % year on an annual basis to 21.546 billion dollars, overcoming a consensus of 21.05 billion dollars.
The profitability of the modified stock was $ 1.49, an increase of 4.3 % on an annual basis, higher than a consensus of $ 1.38. Despite the best results expected, the company is clearly struggling with the effect of lower delivery processes and tariffs in Amazon, which leads to an important operational restructuring.
Earlier this month, President Trump imposed a 145 % new tariff on many Chinese goods, escalating trade tensions. While American imports make up less than 2 % of UPS global size, China and the United States Road remains very profitable, which represents 11 % of UPS revenues. UPS is an increasing volume of Europe and Asia, but the small companies that depend on China can reach severe. UPS also faces risks from Chinese e -commerce giants with the end of the fee exempt in May. “In the worst cases,” the shock of the offer can be followed Brian DixAnd EVP and CFO in UPS.
UPS has a growth classification of 38.42 % and a value of 57.32 %, according to the Banznaga edge classifications. For an in -depth report on more shares and visions of growth opportunities, subscribe to Benzinga Edge.
The stock fell more than 12 % during the past month. On Tuesday, it closed 0.37 % less, according to Benzinga Pro
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Disintegration: This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Beenzinga editors.
