Due to the” current macro-economic doubt” that its customers are facing, UPS  is hesitant to confirm its previous annual financial projections. Due to weak customer need, it even reported a decline in home item quantities in February and March.
The only thing we can say for sure about, is that we don’t know how many of our scenarios may turn out, CEO , Carol Tomé , told investors on Tuesday morning.” The world hasn’t been faced with such gigantic possible impacts to business in more than 100 years.
She insisted, nevertheless, that the business is capable of “managing through” the condition.
The vastness of UPS’s logistics networking and its observations of consumer behavior can be a harbinger for the world economy. The business delivered an average of 22.4 million items on a daily basis in 2024.
The international transport company reported on Tuesday that an , which had already announced cutbacks to its relationship with Amazon, combined with a larger effort to make its channel more “efficient,” will result in 20, 000 lost work and the closing of 73 leased and owned properties by the end of June, with more to occur.
Although a company official declined to provide information on when specific houses would close, CFO Brian Dykes  told investors that two-thirds would be in the southeast region of , the United States , and one-third in the western.
The lost opportunities are not only connected to those structures, but they will be spread “across the entire network, including the U.S.,” he added. The firm anticipates that the changes will save about$ 3.5 billion in prices in 2025 overall.
The bank’s largest user has been Amazon for years. The company has around 490,000 employees worldwide, which equals about 4 % of its workforce.
The company already has 12, 000 employees in its control divisions as of last year.
Some things we don’t understand, we say.
According to discussions with its biggest 100 customers in the United States, Tomé said it is still” an empty problem” how they are making their tariff response.
Some companies are now looking to relocate their manufacturing to other nations, she said, while others are absorbing the costs, some are raising prices, and others are turning to suppliers to offset the costs.
However, the current trade war is likely to have adisproportionately negative impact on UPS’ small and medium-sized business clients because many of them are 100 % single-sourced from , China , and because the U.S.  , valued under$ 800 is set to end on Friday, according to Tomé.
She noted that these clients aren’t large enough to “pull ahead” their stash and products as larger clients have already done.
She noted that the Friday deadline is still ambiguous given the industry surroundings and the Trump administration’s propensity to halt actions. She continued,” We know it’s been announced.” We don’t understand whether or not it will really occur. We’re not sure if it will stay. There are many issues that we are unaware of.
She said in interviews with 45, 000 worldwide and freight forwarding customers that 95 % of them have told UPS and UPS that they intend to “maintain their present business model,” but some are considering changing their trade locations, using alternative transportation methods, or leaving the company. They’re even allowing inventory amounts to decline, she said.
The business ‘s , China-to-U. According to Tomé, S.   trade roads are its most lucrative and accounted for 11 % of global revenue last year. It anticipates a decline in size between the nations of roughly 25 % in the second quarter.
However, according to Kate Gutmann, chairman of UPS’ worldwide, health care, and chain solutions, the company is now seeing some of that quantity shift to other nations, including Thailand, Vietnam, and Europe.
” I may inform you that it is shifting. It’s currently taking place.
Maintain this through.
The Sandy Springs-based company   announced on Tuesday that it anticipates a quarterly decline of about 0.7 % in revenue. However, it increased by 4.2 % in quarterly profits compared to 2024, slightly above the analysts ‘ expectations.
However, its decline in home package volumes in February and March was significantly lower than what it had anticipated and was in line with standard demand.
According to Tomé,” to modify our network and lower costs across our business could not be done in a hurry,” the Amazon winddown.
The organization is rewiring its whole network, which will ultimately result in 400 services that are “either partially or fully automated,” according to Nando Cesarone, president of UPS.
Automation has been implemented by UPS  in some of its picking activities, including at its mega , Atlanta SMART hub, north of downtown , Atlanta.
According to Tomé, the organization is considering “many another automated opportunities,” including robotics for automated label applications and unload and load trailers.
She informed investors that UPS’ system is even well-positioned to change customer delivery strategies.
For instance, in 2018, when the first Trump administration imposed taxes on , China,  , UPS , saw its , China-to-U. She claimed that while the economy is in collapse, China’s share of the world is increasing.
” Our international business actually grew,” she said,” and it all leveled out.” ” We will be able to just control this,” the saying goes.
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The Atlanta Journal-Constitution, 2025.
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