The United Parcel Service will eliminate 20,000 operational roles following the company’s decision to reduce its collaboration with its largest customer, Amazon.

In a Tuesday regulatory filing, UPS personnel said the cuts are in “connection with our anticipation of lower volumes from our largest customer.” 

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UPS announced $21.5 billion in revenue for the first quarter. The layoffs, along with its consolidation plan, will save $3.5 billion this year, according to the company.

“These actions will enable us to expand our U.S. Domestic operating margin and increase profitability,” UPS chief financial officer Brian Dykes said during an earnings call Tuesday morning.

Earlier this year, UPS announced a deal with Amazon to decrease its delivery volume by more than 50% in the latter half of 2026.

UPS personnel said in the company’s quarterly earnings statement that there was also a risk to the company due to the shifts in global trade following the rollout of President Donald Trump’s tariffs, citing the impact they could have on business.

“The world hasn’t been faced with such enormous potential impacts to trade in more than 100 years,” CEO Carol Tome said on the company’s earnings call.

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UPS has been tracking tariff developments on its website. The company also created a new tool, UPS Global Checkout, that highlights the upfront costs shoppers will pay in duties, fees, and taxes.

UPS employs around 490,000 people and operates in 200 countries.