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.
The world’s largest package delivery firm said the job reductions would be achieved primarily through voluntary buyout offers to full-time drivers and by not replacing staff who leave the business. The move forms part of a broader turnaround strategy aimed at reshaping UPS’s network and focusing on higher-margin customers.
UPS said Amazon shipments were “extraordinarily dilutive” to profit margins, prompting the company to deliberately reduce its exposure to the online retailer. Last year, UPS announced it would scale back its dependency on Amazon and pivot towards more profitable sectors, including healthcare and time-critical logistics.
Chief executive Carol Tomé said the company was nearing the end of its planned drawdown.
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