Shreveport residents have reason to be concerned after UPS announced a major layoff that will affect over 20,000 workers nationwide. The layoffs come in response to a decline in Amazon shipments, which has been one of UPS’s biggest sources of revenue.
According to CBS News, this decision will have a significant impact on the workforce at UPS, leaving many employees in limbo.
UPS has made the choice to reduce the number of packages it delivers for Amazon, its largest customer. As a result, the company will see a major decrease in the number of deliveries it needs to make. But what many didn’t expect was that these changes would lead to such a large number of job losses.
Why Is UPS Laying Off Over 20,000 Workers?
The decision to lay off such a large number of employees comes as a result of a decline in Amazon shipments. According to Fox Business, this move makes UPS the first major American company to move forward with large-scale layoffs due to slowing trade caused by the Trump administration’s tariffs.
Currently, UPS employs about 490,000 people, and with 20,000 jobs being cut, the company will be eliminating 4% of its workforce. This follows a previous announcement by UPS in which they revealed they would be cutting 12,000 positions last year. Combined, these two rounds of layoffs amount to 32,000 job losses in less than two years.
Will Shreveport Be Affected by the UPS Layoffs?
While it’s unclear exactly how Shreveport will be impacted, the city could see some effects. UPS plans to close 73 storefronts across the U.S. by June 2025, according to CNN. This means fewer locations for employees, possibly leading to job losses in the Shreveport area as well.
Brian Dykes, the Chief Financial Officer of UPS, spoke about these changes during an earnings call, saying that these moves are meant to help the company increase profitability and expand its U.S. Domestic operating margin.
This strategy may reduce costs in the short term, but the loss of jobs will undoubtedly affect many people, especially in smaller cities like Shreveport.