UPS to cut 20,000 jobs amid reduced Amazon deliveries

UPS plans to slash 20,000 jobs and close over 70 facilities as part of a plan to lower the amount of Amazon shipments it manages. UPS told the Associated Press Tuesday that it anticipates making job cuts in 2025 and expects to close 73 leased and owned buildings by the end of June. UPS employs roughly 490,000 workers, the AP noted, citing FactSet. The Atlanta-based company announced in January that it had struck a deal with Amazon, its largest client, to minimize its volume by over 50% by 2026. In a statement from UPS obtained by the AP, CEO Carol Tomé said Tuesday, "The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. "The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS." Tomé also told the AP that UPS explored options and determined that volume reduction was the best alternative. The company reported its first-quarter financial results on Tuesday, stating that it earned $1.19 billion, or $1.40 per share, in the quarter ending March 31. Barron's Allen Root joins LiveNOW's Austin Westfall to break down what these layoffs mean for the economy.