UPS plans to reduce its work strength by 20,000 positions this year and close 73 facilities by the end of June, the company announced with its First Quarter Profit Report Tuesday.

Reduce jobs will affect about 4% of the global workforce of 490,000 UPS people. UPS noted in the report that it expects to save $ 3.5 billion this year from the holidays and closures of the facilities. It projects expenses between $ 400 million and $ 600 million in expenses this year.

UPS is cutting its work power after announcement In January it would do less business with Amazon, a company that accounted for almost 12%, or about $ 1.07 billion of its total revenue in 2024. UPS plans to reduce more than half of the business it does with Amazon by June 2026, resulting in a significant loss of revenue that it requires its opposition, reducing its opposition, by Wall Street Journal.

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UPS Director General Carol Tomé stated in the profits report that UPS dismissal position to become “even stronger” and “more agile” despite a challenging macroeconomic environment. By ReutersUPS faces a volume drop from goods sent by sellers based on China Shein and TEMU after US implementation a fee up to 145% For Chinese goods earlier this month. Shein has already raised prices up to 377%.

“The actions we are taking to reconfigure our network and reduce the cost throughout our business cannot be more capable,” Tomé said in the profit report.

Last UPS -made by January 2024, when the company Eliminate 12,000 roles and mandated that workers return to the office five days a week.

The transport giant reported its first quarter results on Tuesday. Revenue for the quarter was $ 21.5 billion, lowering 0.7% from the same time last year but higher than Wall Street's EXHIBIT of $ 21 billion. UPS revenue in the SH.BA increased by 1.4% in the first quarter to $ 14.46 billion. The increase was mainly driven by the increase in air loads, which compensate for a decrease in the volume of shipments.

UPS had a market capitalization of Over $ 82 billion at the time of writing. Business SAY It gives 22.4 million packages daily.

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