UPS Layoffs 20000 Workers as Company Tries Cuts and Low Shipments Expected from Amazon

The parcel delivery legendary United Parcel Service (UPS) is going to pruning its 20,000 employees. The company says that the economy is uncertain and the company wants to reduce its cost. Along with this, it has been said by the company that its largest customer is expected to have fewer shipments this year from the company Amazon.

A big trimmed has been decided in the parcel delivery service company (UPS). The company is going to remove 20 thousand employees from jobs. This step has been taken due to the possibility of reducing the cost of the company and a decrease in Amazon’s shipments. Last year, Amazon stakes 11.8 per cent in UPS profits. Of forbes Report According to, by June, the company’s lease and 75 buildings will be closed, which the company expects to save about $ 350 million.

The March quarter recorded a slight decline in the company’s profits. According to the report, the company’s profit in the March quarter stood at $ 2150 million. According to Forbes, the Consumer Confidence Index is running at the lowest level since 2011. Conference Board’s Consumer Confidence Index is currently at the lowest level since 2011, which is believed to be a sign of recession for delivery companies. Logistics industry is considered an industry that can already warns of recession.

Carol Tomé, UPS CEO, has said that global trade policies are also going through a period of uncertainty, which has reduced consumer trust and decreased demand from some big customers, especially small and medium -sized customers. The decline in the forecast he had for the average daily shipping volume occurred in February and March, as the tariff had increased. Carol says that there is so much uncertainty in the economy that it is not possible to give any update for the entire year outlook.