ATLANTA, U.S. — United Parcel Service (UPS) don announce on Tuesday say dem go cut 20,000 jobs and close down 73 facilities. Dis na part of dem strategy to reduce delivery volumes for Amazon.com, wey dey be dem biggest customer, amid di trade issues from U.S. President Donald Trump tariffs.
According to UPS spokesperson, di layoffs go come as dem dey remove 50% of shipping volume from Amazon, while dem still dey undergo major operational restructuring and cost-cutting initiatives. “We go comply with our contract with Teamsters Union, we dey committed to 30,000 jobs under di agreement,” Sean O’Brien, di Union’s General President talk.
An Amazon representative confirm say, “Due to their operational needs, UPS request make we reduce volume, and we respect their decision.” Dis decision dey come at a time wen di heavy tariffs don start to dey affect global trade, and fear say recession fit follow don dey increase.
Carol Tome, UPS CEO, highlight say, “Di world never face such serious impact on trade since over 100 years.” As di biggest package delivery company for di world, UPS dey serve numerous sectors and dem see am as a litmus test for di global economy.
UPS go save $3.5 billion by 2025 with dis new cost-cutting plan, di company don announce as dem dey aim to reduce expenses by cutting down shipping from Amazon. Dis move has generate concern over how dem fit manage di drop in business, especially as dem dey see decrease from di China market.
Di Chief Financial Officer, Brian Dykes, talk say, “If Trump’s tariffs on China continue, we fit face serious supply shocks, especially for small and medium businesses wey dey rely on Chinese goods.” UPS expect a drop of about 9% in average daily packages as dem highlight di pressure wey di tariffs impose on e-commerce.
UPS stocks drop by 0.4% while rival FedEx also fall by 0.8% on di news of layoffs. Di potential impacts of di tariffs fit further reduce di number of shipments between U.S. businesses, as di market keeps adjusting. Analysts dey closely watch di situation as UPS prepare for di busy holiday season.
US Customs and Border Protection don announce new tariffs wey go start from May 2, and dis fit affect how much sales e-commerce companies like Shein and Temu fit do. Dis changes fit hit retail customers wey UPS dey serve currently, as dem go now have to pass costs to im customers.
Even as di company expect to report an income of $89 billion, dem no fit predict how many jobs and packages go dey affected moving forward. UPS need ensure sey dem adapt quickly to di changing market wey dem dey navigate right now.
