​UPS and Amazon Announce Significant Layoffs Amid Strategic Shifts

 

In a series of major workforce reductions, both United Parcel Service (UPS) and Amazon have announced significant layoffs as part of broader strategic realignments.

UPS plans to eliminate approximately 20,000 positions and shut down 73 facilities in 2025. This decision follows a substantial reduction in package volumes from Amazon, its largest but less profitable customer, which accounted for 12% of UPS’s $91 billion revenue in 2024. The restructuring aims to consolidate UPS's U.S. domestic operations and is expected to generate $3.5 billion in cost savings, despite incurring $400–$600 million in associated expenses.

CEO Carol Tomé cited Amazon’s low-profit margins as a reason for reducing business ties. Additionally, ongoing U.S. tariffs under the Trump administration and economic uncertainty have prompted the company to withhold updating its annual forecast. UPS reported $1.2 billion in net income on $21.5 billion revenue in Q1 2025, slightly below expectations. ​

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Amazon Lays Off Hundreds in AWS Division

Amazon has announced layoffs affecting several hundred employees within its cloud computing unit, Amazon Web Services (AWS). The cuts impact roles in sales, marketing, global services, and the physical stores technology team. This move follows the discontinuation of Amazon's "Just Walk Out" technology in its U.S. grocery stores, leading to redundancies in the supporting tech teams. 

An AWS spokesperson stated that the layoffs are part of a strategic shift to streamline operations and focus on key business priorities. Amazon has been undergoing a series of workforce reductions across various divisions, including Prime Video, MGM Studios, and Twitch, as it adjusts to changing market dynamics and overexpansion during the pandemic.