In a shocking move, United Parcel Service (UPS) announced it will cut 20,000 jobs and close 73 facilities in 2025, citing President Donald Trump’s new tariffs and a significant reduction in Amazon shipments. This decision, revealed on April 29, 2025, is sending ripples through the logistics industry and beyond, raising concerns about which sectors and companies might be next. Are you at risk? And if so, what can you do to protect yourself? Let’s dive into the details.
Why Is UPS Cutting Jobs?
The primary drivers behind UPS’s drastic measures are twofold:
- Trump’s Tariffs: President Trump’s aggressive trade policies, including a 10% baseline tariff on all countries and higher reciprocal tariffs on nations like China, have disrupted global trade. These tariffs, effective from April 5, 2025, are increasing costs and reducing shipping volumes, particularly from China, a key market for UPS.
- Reduced Amazon Shipments: UPS has already halved its delivery volume for Amazon, its largest customer, which accounted for 11.8% of its 2024 revenue. This reduction, combined with the loss of duty-free status for low-cost e-commerce platforms like Temu and Shein starting May 2, 2025, is hitting UPS hard.
CEO Carol Tomé described the situation as unprecedented, stating, “The world hasn’t been faced with such enormous potential impacts to trade in more than 100 years.” UPS expects to save $3.5 billion through these cuts, but the human cost is significant, affecting 20,000 employees, many of whom are Teamsters union members.
Which Industries and Companies Are Next?
The fallout from Trump’s tariffs extends far beyond UPS. Here are the industries and companies most at risk:
- Logistics and Shipping: FedEx, UPS’s top rival, signaled a slowdown in March 2025, suggesting it may follow suit with cost-cutting measures. Smaller logistics firms and regional carriers could also face pressure as shipping volumes drop.
- Retail and E-Commerce: Amazon, heavily reliant on Chinese sellers (over 40% of its marketplace), faces higher costs that may lead to price hikes or reduced operations. Retailers like Walmart and Target, which source heavily from China, Vietnam, and Bangladesh, are also vulnerable.
- Automotive: General Motors delayed its investor call due to tariff uncertainties, and car prices are expected to rise by thousands. Companies like Ford, Hyundai, and Volkswagen, with significant import or export operations, are at risk.
- Consumer Goods: Companies like Kraft Heinz and Hilton have already trimmed forecasts, citing tariff-related uncertainty. Apparel brands relying on Asian manufacturing, such as Adidas, may face margin squeezes.
- Technology: Apple, with its China-based manufacturing, could see iPhone prices rise by 30-40%. Other tech giants like Nvidia and Tesla, part of the “Magnificent 7,” have already lost significant market value due to tariff fears.
Small and medium-sized businesses (SMBs) that depend on Chinese imports are particularly vulnerable, as many source 100% of their goods from China. The end of de minimis treatment for Chinese shipments will further exacerbate costs, potentially leading to layoffs or closures.
Are You at Risk?
If you work in logistics, retail, automotive, consumer goods, or technology, your job could be at risk. Operational roles, such as package handlers, drivers, or warehouse staff, are particularly vulnerable at companies like UPS. However, white-collar roles in supply chain management, procurement, or sales could also face cuts as companies streamline to offset tariff costs.
Here are signs your job might be at risk:
- Your company relies heavily on imported goods, especially from China, Mexico, or Canada.
- Your employer has announced cost-cutting measures or reduced revenue forecasts.
- Your role involves handling low-margin or money-losing operations, like UPS’s Amazon fulfillment work.
- Your industry is facing reduced consumer demand due to higher prices.
If any of these apply, it’s time to take proactive steps to protect your career.
How to Protect Yourself
While the economic outlook may seem daunting, there are practical steps you can take to safeguard your career and financial stability:
- Upskill and Diversify: Invest in skills that are in demand, such as data analysis, automation, or cybersecurity. Online platforms like Coursera or LinkedIn Learning offer affordable courses. If you’re in logistics, consider certifications in supply chain management.
- Explore Growing Industries: Sectors like renewable energy, healthcare, and domestic manufacturing may see growth as tariffs encourage U.S.-based production. Research opportunities in these fields.
- Network Strategically: Connect with professionals in stable or growing industries through LinkedIn or industry events. A strong network can open doors to new opportunities.
- Update Your Resume: Highlight transferable skills and recent achievements. Partner with a staffing agency like Davron to access exclusive job openings and career guidance.
- Financial Planning: Build an emergency fund to cover 6-12 months of expenses. Reduce non-essential spending to prepare for potential income disruptions.
- Stay Informed: Monitor tariff developments and industry trends. UPS’s website offers tools like UPS Global Checkout to understand tariff costs, which can help you anticipate changes in your sector.
What’s Next for the Economy?
Trump’s tariffs are reshaping global trade, with potential ripple effects across multiple sectors. While some industries may benefit from increased domestic manufacturing, the short-term outlook includes higher prices, reduced consumer spending, and a possible recession. Economists estimate tariffs could add $1,300-$5,000 to household costs in 2025, further straining Main Street.
Companies are already responding. Volvo Cars is cutting $1.8 billion in spending, and General Motors has pulled its 2025 forecast. The Port of Los Angeles expects a 35% drop in shipping volume, signaling broader supply chain disruptions.
At Davron, we’re committed to helping professionals navigate these turbulent times. Whether you’re facing layoffs or seeking a career pivot, our expert recruiters can connect you with opportunities that align with your skills and goals.
Take Action Today
The UPS job cuts are a wake-up call for workers across industries. Don’t wait until your job is on the line. Start upskilling, networking, and exploring new opportunities now. Visit Davron.net to browse job listings, get personalized career advice, and stay ahead of the curve in 2025.
Sources: Reuters, The New York Times, Forbes, CBS News, April 29, 2025