UPS to cut 20,000 jobs, close 73 buildings amid less Amazon deliveries

UPS said Tuesday that it is planning to cut 20,000 jobs this year and close 73 buildings by the end of June amid fewer shipments from Amazon, its biggest customer.

There are currently around 490,000 UPS employees across more than 200 countries, CBS News reported.

"These actions will enable us to expand our U.S. Domestic operating margin and increase profitability," said UPS chief financial officer Brian Dykes on an earnings call Tuesday morning.

In a Securities and Exchange Commission filing on Tuesday, UPS said the cuts are in "connection with our anticipation of lower volumes from our largest customer" and that it expects to save $3.5 billion this year as a result.

In January, UPS said it had reached an agreement with Amazon to decrease the e-commerce company's shipment volume by more than 50% by the second half of 2026.

"The reduction of package volume from Amazon is something UPS chose to do as we focus on revenue quality, and increase domestic operating margin and profitability," a UPS spokesperson told CBS MoneyWatch.

UPS shares dropped 1.16% in early trading on Tuesday.