Automation, Economic Shifts Trigger Job Cuts at USPS, UPS
(MENAFN) According to a report, thousands of jobs for delivery workers at the United States Postal Service (USPS) and United Parcel Service (UPS) could be eliminated this year. Both companies are reportedly aiming to reduce expenses and optimize their operations in response to the impact of U.S. President Donald Trump's tariffs and advancements in digital technology on the economy.
Last month, UPS's chief executive announced the company's intention to cut 20,000 jobs this year, representing approximately 4 percent of its global workforce. Additionally, the company plans to close 73 distribution centers by the end of June.
These closures are part of a long-term strategy to modernize distribution center operations, which includes the implementation of full or partial automation in 400 of its facilities. Earlier this year, UPS also announced an agreement with Amazon, its largest customer, to decrease business-related operations by over 50 percent by the latter half of 2026.
In March, the then-Postmaster General Louis DeJoy announced that the USPS would also be cutting 10,000 positions and reducing its budget with assistance from the Department of Government Efficiency.
The report highlighted that "The move comes as the Postal Service has experienced close to 100 billion U.S. dollars in losses and was projected to lose an additional 200 billion dollars." As of 2024, the USPS employed 533,724 individuals.
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