Amazon Slowdown Sparks UPS Layoff Plans: 5 Ways to Stay Ahead

UPS recently announced plans to cut 20,000 jobs, signaling a major shift in the shipping industry. This could potentially impact how you get your packages and manage online shopping.

This dramatic restructuring, which includes closing 73 facilities and reconfiguring the company’s delivery network, comes as UPS faces declining volumes from key customers like Amazon and prepares for potential impacts from new tariffs.

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Understanding the shipping slowdown

UPS is making these cuts primarily in response to anticipated volume declines from Amazon, representing nearly 12% of the company’s overall revenue. The delivery giant is also preparing for a potential sharp drop in packages from Chinese e-commerce platforms like Temu and Shein following new U.S. tariff policies taking effect in May.

Despite challenges, UPS exceeded Wall Street expectations in Q1, with revenue reaching $21.5 billion and domestic segment revenue growing 1.4% — though package volumes continued to decline.

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How tariffs are reshaping shipping options

The imposition of extensive tariffs has already begun slowing trade, with companies cutting costs as they prepare for potential demand disruptions. For shipping giants like UPS, this economic uncertainty means fewer business-to-business shipments and a need to reconfigure delivery networks.

These adjustments often trickle down to consumers through higher shipping costs, longer delivery times, or fewer delivery options. When preparing your budget for these changes, it’s also smart to think longer term. If you have a high-deductible health plan, a Health Savings Account can help you cover future medical expenses without draining everyday savings. Check out Lively HSAs.

5 ways to navigate the changing shipping landscape

You can minimize shipping costs and adjust to schedule disruptions. Here are some ways you can respond:

1. Consolidate your online orders. With UPS streamlining operations and closing facilities, delivery speeds and availability might change. When possible, try bundling your online purchases into fewer orders. Many retailers offer incentives for reaching minimum order thresholds, which can offset potential increases in shipping fees while reducing your carbon footprint.
2. Explore alternative shipping carriers. Now’s the perfect time to familiarize yourself with multiple shipping options. The U.S. Postal Service, FedEx, and regional carriers might offer competitive rates as UPS restructures. When sending packages, compare shipping costs across platforms — pricing differences have widened as carriers adjust to changing market conditions.
3. Adjust expectations for international purchases. New tariffs on retailers like Temu and Shein may mean added costs and slower delivery times. With more shipping uncertainty, planning is key — and so is protecting other parts of your budget. Car repairs, for example, now average $4,000. Endurance pays repair bills upfront at thousands of certified shops, so you only cover the deductible. Get a free quote today!
4. Take advantage of local pickup options. Many retailers now offer free in-store or curbside pickup. This hybrid shopping approach allows you to browse and purchase online while avoiding shipping costs and potential delivery delays. This strategy can mean significant savings for frequent shoppers and insulate you from volatility in the shipping industry.
5. Plan for holiday shipping. With UPS reducing its workforce and closing facilities, the traditional holiday shipping rush could face additional strain this year. Consider shopping and shipping earlier than usual for the upcoming holiday season, especially if you rely on timely deliveries for gifts or essential items.

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The bigger economic picture

These UPS changes reflect broader economic trends affecting consumers. As UPS CEO Carol Tome noted, the company’s network reconfiguration and cost-reduction measures are timely given current economic conditions.

For consumers, these shifts serve as a reminder that the conveniences we’ve come to expect from e-commerce and rapid shipping aren’t immune to economic pressures. Proactively diversifying your shipping options and adjusting expectations can help you navigate disruptions with minimal strain on your budget.

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