UPS will cut 20,000 jobs this year after breaking with its biggest customer Amazon.
The delivery giant is looking to slash costs after its decision in January to halve the number of Amazon deliveries it takes.
Deliveries for the e-commerce giant makes up around 12 percent of UPS’s revenue, the company said.
However, UPS said the profit margins for Amazon deliveries were too small and it wanted to refocus on more lucrative markets such as healthcare and international deliveries.
The decision will also lead to the closure of 73 UPS buildings this year, the company said on Tuesday.
UPS CEO Carol Tomé argued that the chance to reduce costs and reorganize its network was also timely given the uncertain economic environment.
‘The world has not been faced with such enormous potential impacts to trade in more than 100 years,’ Tomé said on the company’s earnings call on Tuesday.
It comes after UPS cut 12,000 jobs and closed 11 buildings last year.
The company currently has 490,000 employees, around 330,000 of which are represented by the Teamsters union.
