UPS to cut 20,000 jobs in network reconfiguration

And so it starts. UPS, while announcing a better-than-expected profit, also enthused investors with its announcement of 20,000 job cuts this year – 4% of its workforce. The pain would be domestic, it said. It will reconfigure its network, triggering the job losses and closure of some facilities, in part because of the loss of volumes from its largest customer, Amazon.

The company will close 73 leased and owned buildings by the end of the year. The cuts will cost it up to $500m, but save it some $3.5bn this year, but more closures may be on the cards, reports MorningStar.

UPS added that it could reconsider its pension plan obligations.  And it is not providing any updates to its full-year outlook due to the economic uncertainty. You can read its Q1 earnings report here.