The United Parcel Service (UPS) has announced plans to cut thousands of jobs and close over 70 buildings in 2025, per the company’s 2025 first quarter earnings report.

The new report analyzed UPS’ first quarter revenue — $21.5 billion, down from $21.7 billion last year — and outlined the intent to “reduce our operational workforce” in 2025. UPS expects to eliminate 20,000 positions over the course of this year, and shutter 73 “leased and owned” buildings by the end of June.

“We are continuing to review our network and may identify additional buildings for closure,” the report states.

These plans appear under a portion of the report titled “Network Reconfiguration and Efficiency Reimagined,” which states that the changes could yield $3.5 billion of “total cost savings” in 2025.

The news arrives as U.S. business brace for the impact of President Donald Trump’s tariffs, which include a 145% tariff on goods imported from China and a baseline 10% tariff on goods imported all other countries.

“As a trusted leader in global logistics, we will leverage our integrated network and trade expertise to assist our customers as they adapt to a changing trade environment,” said Carol Tomé, UPS chief executive officer. “Further, the actions we are taking to reconfigure our network and reduce cost across our business could not be timelier. The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”

UPS currently employs 490,000 people, which is already lower than the 500,000 employees listed in the company’s fourth quarter earnings report from 2024.