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UPS to cut 30,000 jobs as it accelerates shift away from Amazon deliveries
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Business Matters
UPS has announced plans to cut up to 30,000 jobs this year as it continues to reduce deliveries for its largest customer, Amazon, which the parcel giant says have been weighing heavily on profitability.
UPS said Amazon shipments were “extraordinarily dilutive” to profit margins, prompting the company to deliberately reduce its exposure to the online retailer.
The strategic shift highlights the changing dynamics of the US delivery market, where Amazon has rapidly expanded its in-house logistics network.
In 2024, Amazon handled an estimated 6.3 billion deliveries in the US, overtaking both UPS and FedEx.
By 2028, Amazon is expected to surpass the US Postal Service as the largest delivery operator in the country, according to Pitney Bowes’ parcel shipping index.