UPS to Cut 20,000 Jobs After Amazon Breakup

What This Means for Small Businesses, E-Commerce, and the Future of Shipping

In a move sending shockwaves through the logistics world, UPS announced today that it will slash 20,000 operations jobs and shutter 73 buildings by the end of June 2025. The reason? A strategic shift following its partial breakup with Amazon and a sharp decline in parcel volume.

And if you're a small business owner, product-based entrepreneur, or handmade seller—this matters. A lot.

What’s Behind the Cuts?

UPS isn’t just trimming fat. It’s overhauling how it operates.

Here’s what’s changing:

• Fewer packages from Amazon. UPS no longer wants Amazon’s lower-margin packages clogging its network.

• More automation, less labor. The goal? Boost efficiency and profitability.

• Shutter 73 buildings. This consolidates operations and cuts costs ahead of weaker demand.

CEO Carol Tomé didn’t mince words: consumer sentiment is dipping, macro uncertainty is rising, and importers are reevaluating sourcing—especially from China.

What This Means for Small Businesses

Let’s break it down in real-world terms:

Longer Delivery Times? Fewer facilities + fewer people = potential delays, especially in rural areas.

Higher Shipping Costs? With UPS focusing on profitable parcels (think returns and high-volume clients), smaller shippers could get squeezed with higher rates or fewer service options.

Tariff Turmoil A 25% drop in demand from China to the U.S. is no small hiccup. Handmade sellers sourcing raw materials or packaging from China may face even longer lead times and uncertainty—again.

Automation = Less Flexibility More automation may streamline operations—but it also leaves less room for personalized service. That matters when you’re shipping fragile or handmade goods.

But There’s a (Small) Silver Lining

UPS says international demand outside of China-to-U.S. is still strong.During the Trump-era tariffs, their international business actually grew. So there may be new routes and opportunities if you're shipping overseas or working with global fulfillment partners.

They're keeping profitable Amazon services like returns and seller-fulfilled orders. That’s good news for brands using FBA alternatives or Shopify/Amazon integrations.

What Should You Do Now?

Reassess Your Shipping Strategy Don’t wait until Q4 chaos to evaluate options. Compare UPS with USPS, FedEx, DHL, and regional carriers.

Update Your Pricing Models Factor in possible rate hikes or delays. Buffer your margins if you rely on imported goods.

Diversify Your Supply Chain Explore sourcing options beyond China to avoid volatility. Countries like Mexico, Vietnam, and India are becoming increasingly viable.

🤝 Stay Close to Your Carrier Rep If you’re a volume shipper, negotiate. Loyalty counts, but so does leverage.

UPS to Cut 20,000 Jobs :( UPS’s massive restructuring isn’t just a corporate headline—it’s a clear sign that the shipping landscape is shifting again. For small businesses, it’s time to adapt, diversify, and stay nimble. Because while you can’t control the parcel giants, you can control how you respond.

Focus Keyword: UPS Job Cuts 2025Meta Description: UPS to cut 20,000 jobs and shutter 73 buildings by June 2025 following its partial split with Amazon. What this means for small businesses and e-commerce shipping.