United Parcel Service (UPS) announced on April 29 that it will reduce costs and enhance profitability this year through large-scale layoffs and the closure of operating institutions.

This American logistics giant plans to cut approximately 20,000 operational positions this year, accounting for about 4% of its total workforce. In the first stage by the end of June, the company plans to close 73 leased and owned business outlets.

The company said that this business restructuring is related to the reduction in business volume of retail giant Amazon and will help the company reduce cost expenditure by 3.5 billion US dollars. In January, the company announced a principle agreement with Amazon that by the second half of 2026, the volume of business delivered by Amazon through the company would be reduced by more than 50%.

The performance report released by United Parcel Service on the same day showed that the company achieved operating revenue of 21.546 billion US dollars in the first quarter of this year, a year-on-year decrease of 0.7%. The company said that considering the changes in tariff policies, the demand for express delivery services is expected to weaken, and both domestic and international business revenues are expected to decline.