UPS expects to incur $400–$600 million in restructuring costs this year|Tomas Del Coro|CC BY-SA 2.0

United Parcel Service (UPS) plans to cut 20,000 operational jobs as part of cost-reduction efforts following the end of its partnership with Amazon, which previously accounted for 12% of its revenue.

The company will also close 73 buildings this year—up from 11 closures last year when it cut 12,000 primarily managerial roles.

UPS said it would adhere to its labor agreement with the Teamsters union, which represents 330,000 of its workers. The company expects to incur $400–$600 million in restructuring costs this year.

The restructuring aims to save $3.5 billion by 2025 as UPS adjusts to lower shipping demand and the impact of global trade disruptions.

In the first quarter, UPS earned $1.19 billion on $21.5 billion in revenue, beating expectations.