UPS to cut 20,000 jobs on likely lower Amazon shipments, profit beats estimates
(Reuters) -United Parcel Service's (UPS) first-quarter profit beat market estimates and the parcel delivery giant said it will cut 20,000 jobs to lower costs in an uncertain economy and in anticipation of weak volumes from its largest customer, Amazon (AMZN).
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Extensive tariffs by U.S. President Donald Trump have slowed down trade and led companies to reduce costs in anticipation of a demand hit. For parcel delivery firms, the slowdown is likely to reduce the need for shipping services between companies.
"The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier," CEO Carol Tome said.
UPS said it was not providing any updates to its full-year outlook due to the economic uncertainty even as it lowers costs through jobs cuts, warehouse closures, increased automation and asset sales.
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