UPS is shutting down operations in three states due to its ongoing downsizing process.
In a significant shake-up, United Parcel Service (UPS) announced plans to cut around 20,000 jobs and close 73 facilities by June 2025. This move, part of a larger restructuring effort, was primarily driven by a significant reduction in delivery volumes from Amazon, UPS's largest customer, among other economic factors such as tariffs and changing trade conditions.
The job cuts and facility closures began in earnest in early 2024, with UPS cutting 12,000 jobs due to a challenging year in 2023. This was followed by more layoffs and closures in 2025.
Contrary to some reports, UPS did not announce any job cuts or facility closures specifically in 2021. Instead, the company focused on growth opportunities, including acquisitions and expanding healthcare logistics, and experienced a sales jump partly driven by Amazon revenue.
Recent Developments
In 2025, UPS temporarily closed a parcel sortation center in New Orleans, resulting in the layoff of 177 personnel. The company also laid off 99 workers at a facility in Charlotte in early May and plans to lay off 62 workers at its Dallas facility on Monroe Drive. UPS has also given van drivers more time to make a decision because the voluntary separation package program is undersubscribed so far. Layoffs at the Dallas UPS facility began on Aug. 5.
UPS is also streamlining its infrastructure, which means it will need 20,000 fewer workers. The company closed a facility on U.S. Route 68 in Wilmington, North Carolina, on Sept. 23, and it closed a parcel facility in Pocahontas, Arkansas, on Aug. 8. However, the exact number of jobs affected by these closures is unknown.
Future Plans
UPS expects most employees from the Wilmington facility to transfer to another nearby facility, but the specific facility has not been disclosed. The company is also seeking to eliminate more jobs by offering drivers a voluntary separation package. UPS expects volumes to decrease as it focuses on turning away low-margin business.
UPS management has stated that the decisions to phase out half of its business with Amazon and streamline infrastructure are part of the company's larger restructuring effort. The company is committed to maintaining its record of reliable pickup and delivery, despite changes in its building footprint.
In summary, UPS job cuts and facility closures notably took place in 2024-2025, not in 2021, and were driven primarily by reduced Amazon volumes and broader economic challenges. The company continues to make adjustments to its operations and infrastructure to improve profitability amid a challenging macroeconomic environment.
- UPS is planning to eliminate more jobs by offering drivers a voluntary separation package, as part of its efforts to streamline its infrastructure and improve profitability.
- The technology-driven adjustments in UPS's operations, such as the closure of certain facilities and the reduction in Amazon volumes, are part of a larger restructuring process in the finance and business sectors.
