New York, May 6 Jobs for thousands of letter and package delivery workers at the US Postal Service (USPS) and United Parcel Service (UPS) could be cut this year, with both looking to slash costs and streamline operations as the effects of US President Donald Trump's tariffs and digital innovation ripple through the economy, the Los Angeles Times reported.
Last week, the chief executive of UPS announced that the company will cut 20,000 jobs this year, or about 4 per cent of its global workforce, and plans to close 73 distribution facilities by the end of June, Xinhua news agency reported.
The closures are part of a long-term plan to modernise the operations of distribution centers, including adding automation, either fully or in part, to 400 of its facilities.
Earlier this year, UPS announced that it had reached a deal with Amazon, its largest customer, to reduce business-related operations by more than 50 per cent by the second half of 2026.
In March, then-Postmaster General Louis DeJoy announced the USPS would be cutting 10,000 positions as well as slashing the budget with the help of the Department of Government Efficiency.
"The move comes as the Postal Service has experienced close to $100 billion in losses and was projected to lose an additional 200 billion dollars," noted the report. USPS employed 533,724 people as of 2024.
Despite cutting 20,000 positions and automating work at 400 facilities, UPS says the changes to its operations will not affect the experience of customers.
But for the US Postal Service, some changes should be expected.
These changes will be implemented in two phases. The first phase began April 1 and the second will begin July 1.
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