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Ups to eliminate 20K work as an acceleration of Amazon


UPS plans to take about 20,000 front positions in 2025, as it manages a large structure of harmless work from Amazon and provides a large structure of the delivery network, the executors informed about earnings in the first quarter.

In January, the integrated parcel and logistics giant, in June 2026, reached an agreement to reduce the amount of Amazon to more than 50%. About 60% of UPS’s Amazon business loses.

Meanwhile, UPS (NYSE: UPS) A year ago, a better fit with lower parcel volumes and announced an aggressive strategy for network consolidation and loading aimed at improving the profitability by making better compliance. The management announced on Tuesday to the analysts that the Amazon transition plan is due to the reconstruction of the company’s network.

The optimization plan, called the future network, deals with the closure of 200 sorting centers in five years. UPS said in the first stage of the program, including 164 operational turn, and 73 buildings, Brian Dykes, announced as part of the Earnings Conference until the end of June. The company has been announced in recent recent Portland, Oregon to activate updates, plans to close a temporary device in this summer.

Dykes, the initiative is expected to eliminate only $ 3.5 billion in costs this year.

About 35% of deposits will come between 25 million operations between the workforce from culling. Half variable expenses will decrease in a similar amount through 20,000 positions in 20,000 positions along the US network. The reduction of these costs is directly related to the relief of Amazon, the largest customer of UPS. Additional 30% of deposits apply to fixed costs as fewer buildings and support functions.

The United Parcel Service is forced to create 30,000 Teamster jobs with the current national master’s contract. 20,000 jobs.

In the first half of the 2025, the shrinking of the volume of Amazon, the executive said the executive. In the first half of the year, the average daily volume is expected to decrease in the second half after decreasing about 16%.

“Although the building trail changes, the apple and delivery are not a footprint. We will do it with a smaller building,” We will only do it for our larger construction, and will be able to update the work plans (small and medium enterprises), and will be available for customer drops and pickups.

At the end of the network reconstruction, there will be partial or fully automated 400 objects, Nando Cesarone, President, US operations. “The end result will be a more efficient operation with less dependence on labor,” he said.

In addition to automating varieties, UPS learns the use of robotics for automatic label application, unloading and downloading application and other types of functions.

Efficiency programs, united with harmless Amazon business, said the confidence of management can hit the confidence of management, 12% for the US business margin.

The beginning of this year has launched an efficiency driver who redesigned internal processes that redesigned internal processes.

Some analysts should create more savings than the reconstruction of the polls they offer. In the last 18 months, investors expected $ 5 billion in the last 18 months, and the previously announced maya, Morgan Stanley Analyst Ravi Shener, Customer Notes noted.

Management is very difficult to say $ 4 billion from the annual spending shave ($ 1 billion from the future network and $ 3 billion from the process of process efficiency), but increased deposits with $ 3.5 billion in 2025.

The results in the first quarter of UPS are beating the expectations of a little beat of analysts in global markets caused by the US government’s aggressive global tariff policy.

The income has slipped up to $ 21.5 billion in the year of up to $ 21.5 billion in the year, and the profit profit has been extended from 1% to $ 1.7 billion.

UPS did not provide an updated full year leadership due to the aggressive global tariff policy of the US government, and the uncertain macroeconomic environment. However, the forecasts in the second quarter are a negative year during the year.

The revenue is expected to be $ 21 billion, $ 21.8 billion, and average is average for a year in an average of 9%. International revenue will be reduced by about 2% due to the additional and the uncertainty of the requirement.

UPS ‘Tariffs are limited to direct exposure. The import volume of the United States is about 400,000 per day, which is less than 2% of the total global average daily volume. China is the most profitable trade for UPS, which represents China, 11% of international income. Income from other countries to the United States is 17% of the total international income.

During the first quarter, international income increased by 7.1% in the average daily volume. 2.1% increased. UPS, the United States’s access service has increased as the expected inventory purchases before the expected tariff changes.

UPS, from China to 145% of the tariffs, the growth of China to non-US trade stripes, as well as models for all types of scenarios can make operation adjustments for all types of scenarios.

The company’s best 100 customers are investigating a number of tactical tactics to cope with tariffs, swallow costs, transfer to consumers and want to eat part of suppliers. The company has investigated about 45,000 freightteaders clients, most of them have used existing inventory levels to support sales. Many large importers were financed 30 to 90 days before usual to prevent tariffs in the beginning of this month. Causes discount activities of deferred orders. Importers say they have passed the ocean loads, which is more likely to carry more freight from the air.

<em> Air freight containers are transferred to a special floor in the rolls in UPS Worldport in Louisville, Kentucky. (Photo: Eric Kulisch / Tuesday) </ em>“Loading =” Lazy “Height =” 540 “Width =” 960 “Class =” YF-G633G8 Loader “/></div>
</div><figcaption class=Air loads are transferred to containers, Louisville, Kentucky on a special floor with rolls in UPS Worldport. (Photo: Eric Kulisch / Frames)

“We see some volume in both enterprises and small and medium-sized businesses, especially in SMB, because the enterprise has no means to deal with the changes made by our customers.

Small companies do not have the capital to pre-order and have the ability to use contract manufacturers less to move to non-Chinese countries compared to large retailers.

Online buyers on Chinese platforms, the United States will experience a large price increase when releasing a tariff for the low dollar transportation of US dollars, 145% fees and other processing costs. Temu and Fast-fashion merchant Sehin, consumers show the import fee during inspection and Amazon reported Will do the same.

UPS has long promoted the ability to make small enterprises easier to engage in global trade, including global trade, experience and technology. Froze Recently introduced a new tool for retailers called global verification. The shopping uses the AI ​​to assess the items in the basket and calculate taxes during the correct import duty, shipping and processing fees and purchases

The average daily daily volume was lower than expected due to the withdrawal of some customers in response to the uncertainty of the Tariff created by the Trump management.

The Surefost Final-Mile Delivery Surefost completed the U.S. Postal Service of the United States and changed the name of the most economic shipping service to the Earth protector. Basically large retailers provides more operational comfort and reliability after starting the product’s full control of the product used to send goods to the residences. Tome said that during the first quarter, in a timely delivery for the land protector was 97%.

The parcel giant has also included the truck with surface delivery for more than 150 pounds for more than 150 pounds, which offers a price for truck ups. UPS sold UPS freight to TFI International four years ago.

The internal income increased by 1.4%, increases in air loads and a 4.5% improvement per part means a decrease in partial volume. The internal segment has increased the $ 164 million worth of earnings per year.

The average daily ground decreased by 2.5% over the year and the total weather decreased by 9.6% due to sliding in the Amazon business. With the exception of volume reduction from Amazon, the total weather increased by 6.2% with the demand of a daily volume of health and high-tech customers.

The supply chain’s solutions returned 14.8%, primarily due to the sale of the truck broker’s Coyote logistics. The airmake was slightly lower over the year in a period of time, which is lower than replacement with higher market prices in the ocean.

Last week, UPS announced CANADI Logistics Company Agreement to get Andlauer Healthcare Group Inc As the parcel reduces the volume, the higher margin work is part of the strategic efforts to $ 1.6 billion.

Click here for more load waves / American shipper stories by Eric Kulisch.

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