UPS plans to cut 20,000 jobs; Teamsters warn of 'a hell of a fight'

Earlier this week, freight giant UPS announced it plans to cut 20,000 jobs and close 73 buildings by the end of June and a total of 164 be year's end.

The downsizings are prompted, in part, by what UPS said were "new or increased tariffs" and "general economic conditions." The company also said it was reducing by 50% by June 2026 the number of deliveries it makes for e-commerce giant Amazon.

The changes are part of the company's Network Reconfiguration and Efficiency Reimagined plan, which is meant to save $3.5 billion this year.

The company did say if any of the 20,000 job cuts were aimed at its driver corps.

However, UPS' plans drew a sharp reminder from the union that represents 330,000 of the company's 490,000 employees.

Teamsters President Sean O'BrienTeamstersTeamsters General President Sean M. O’Brien Tuesday said, “United Parcel Service is contractually obligated to create 30,000 Teamsters jobs under our current national master agreement. If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way. But if the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight.”

In July of 2023, UPS and the teamsters agreed to a five-year contract, which avoided a threatened strike.