Sandy Springs-based UPS announces 20,000 job cuts | Business News
SANDY SPRINGS, Ga. — United Parcel Service announced April 29 it plans to cut 20,000 jobs and shutter 164 storefronts nationwide amid ongoing changes at one of the world’s largest package delivery companies.
UPS is executing the largest network reconfiguration in its history. In January, UPS announced a deal with Amazon, its largest customer, to lower delivery volume by more than 50 percent by the second half of 2026. When its contract came for renewal, CEO Carol B. Tomé said it was time to reassess margins. The layoff affects fewer than half a percent of all estimated 490,000 UPS employees.
“While our building footprint is changing, our record of reliable pickup and delivery is not,” a UPS spokesperson wrote April 29. “We remain committed to providing industry-leading service to customers in more than 200 countries and territories around the world.”
The company’s first quarter revenue just beat Wall Street’s estimate at $21.55 billion, which was a slight decline from last year.
CEO Tomé told investors April 29 that uncertainty in global trade markets led to a drop in consumer confidence and some muted demand in February and March. Tomé also said the company’s reconfiguration is on track with 73 buildings expected to close by the end of June.
“By modeling different scenarios, we will be able to adjust to rapid shifts in the business,” Tomé said. “Given today’s level of uncertainty; however, we are not providing any updates to our consolidated full-year outlook at this time.”
UPS Spokeswoman Karen Tomaszewski Hill told Appen Media April 30 that the closing of brick-and-mortar locations and the layoffs are not directly related and are a part of the company’s ongoing reconfiguration. The decision predates President Donald Trump’s on-again, off-again tariffs.
In a statement, Sandy Springs Communications Director Carter Long said the city recognizes the impact of the news and understands their announcement creates a lot of uncertainty
“We are reaching out to UPS to understand the scope of the operational job cuts and potential effect on Sandy Springs,” the statement says. “While the geographic locations of the workforce reductions are unclear at this time, our priority remains ensuring our residents have access to the resources they need through the city.”