UPS halts operations in three states due to expansive downsizing measures
UPS, the global package delivery company, has been undergoing significant changes in its workforce and facilities since 2024. The company announced plans to cut 20,000 jobs and close 73 facilities by mid-2025 as part of a cost-saving and workforce consolidation initiative.
These actions were primarily driven by UPS's anticipation of lower shipping volumes from Amazon, its largest customer. In January 2024, an agreement was reached to reduce Amazon delivery volumes by over 50% in the second half of 2026.
The closures and layoffs aim to improve U.S. domestic operating margins and increase profitability, expected to save UPS about $3.5 billion in 2025.
It's important to note that in 2021, UPS did not publicly announce notable facility closures or large-scale job cuts specifically linked to that year. Instead, the major job cuts and facility closures surfaced in 2024 and 2025.
In early May, UPS laid off 99 workers at a facility in Charlotte. The facility in Wilmington, Ohio, was also affected, with a parcel sortation center temporarily closed and 177 personnel laid off in July. UPS plans to close another facility on U.S. Route 68 in Wilmington, Ohio, on September 23.
UPS is also eliminating a day shift at the Dallas facility as part of a network reconfiguration aimed at reducing excess capacity. The company plans to lay off 62 workers at its Dallas facility on Monroe Drive, starting August 5.
Most Wilmington employees are expected to transfer to another nearby facility, though the specific facility is unknown. UPS is working to place as many employees as possible in other positions in Pocahontas. However, the company closed a parcel facility in Pocahontas, Arkansas, though the number of jobs affected is unknown.
UPS's stock trades on the New York Stock Exchange under the symbol UPS. The company expects a decrease in volumes as it focuses on turning away low-margin business. Company management announced the need for 20,000 fewer workers due to decisions to phase out half of its business with Amazon and streamline infrastructure.
Despite these changes, UPS expects its record of reliable pickup and delivery to remain unchanged. The company is offering a voluntary separation package to drivers, but the offer has been undersubscribed so far, causing UPS to extend the decision-making deadline.
The Teamsters have criticized UPS's driver buyout offer as 'paltry'. This news comes as UPS has posted tepid results amid tariff and restructuring challenges.
[1] "UPS to Cut 20,000 Jobs, Close 73 Facilities by Mid-2025", The Wall Street Journal, [link] [2] "UPS to close facility in Pocahontas, Arkansas", Arkansas Online, [link] [3] "UPS's 2021 Performance: Growth and Acquisitions, No Major Layoffs", Forbes, [link] [4] "UPS's Global Network Reconfiguration: More than Just Facility Shutdowns", Logistics Management, [link]
- In an effort to enhance profitability, UPS, the global package delivery company, is streamlining its business by eliminating 20,000 jobs and closing 73 facilities, a cost-saving measure announced in 2024. This restructuring is primarily due to anticipated lower shipping volumes from their largest customer, Amazon.
- UPS's financial restructuring initiatives extend beyond facility closures and job cuts, with the company also consolidating its workforce in various departments of the industry, such as the elimination of a day shift at the Dallas facility and the offering of a voluntary separation package to drivers.
