- NEW YORK — Jobs for thousands of letter and package delivery workers at the
US Postal Service (USPS) and United Parcel Service (UPS) could be cut this
year, with both looking to slash costs and streamline operations as the effects
of US President Donald Trump's tariffs and digital innovation ripple through
the economy, the Los Angeles Times reported.
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- Last week, the chief executive of UPS announced that the
company will cut 20,000 jobs this year, or about 4 per cent of its global
workforce, and plans to close 73 distribution facilities by the end of June,
Xinhua news agency reported.
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- The closures are part of a long-term plan to modernise
the operations of distribution centers, including adding automation, either
fully or in part, to 400 of its facilities.
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- Earlier this year, UPS announced that it had reached a
deal with Amazon, its largest customer, to reduce business-related operations
by more than 50 per cent by the second half of 2026.
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- In March, then-Postmaster General Louis DeJoy announced
the USPS would be cutting 10,000 positions as well as slashing the budget with
the help of the Department of Government Efficiency.
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- "The move comes as the Postal Service has
experienced close to $100 billion in losses and was projected to lose an
additional 200 billion dollars," noted the report. USPS employed 533,724
people as of 2024.
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- Despite cutting 20,000 positions and automating work at
400 facilities, UPS says the changes to its operations will not affect the
experience of customers.
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- But for the US Postal Service, some changes should be
expected.
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- These changes will be implemented in two phases. The
first phase began April 1 and the second will begin July 1.
