WASHINGTON (TNND) — The United Parcel Service (UPS) announced Tuesday it would be laying off 20,000 employees after the shipping giant cut down its shipments for Amazon earlier in the year.

“We expect to reduce our operational workforce by approximately 20,000 positions during 2025 and close 73 leased and owned buildings by the end of June 2025,” the company announced in its first-quarter earnings report. UPS said it anticipates saving $3.5 billion from the “Network Reconfiguration and Efficiency Reimagined in 2025.”

The layoffs and building closures follow what the company called “anticipation of lower volumes from our largest customer.”

In January, the company announced that its shipping volume with Amazon would be cut in half by 2026.

In 2024, 11.8% of UPS’ overall revenue came from Amazon shipments, according to the company.

CEO Carol Tome explained in the company’s 2024 fourth-quarter earnings call that it was “time to step back for a moment and reassess our relationship.”

“Amazon is our largest customer, but it’s not our most profitable customer,” Tome added.

The Trump Administration slammed Amazon on Tuesday over the inclusion of tariff costs on its product prices.

White House Press Secretary Karoline Leavitt called it “a hostile and political act against America.”

The 145% tariffs on Chinese imports are expected to significantly impact Amazon, as 60% of its store sales come from small or medium-sized sellers who rely on Chinese products. In response, Amazon stated that the proposal to include tariffs applies only to its ultra-low-cost Amazon Haul store and has not yet been implemented. The company clarified that listing tariffs on its main site was never considered, according to the Washington Post.

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Editor’s note: The National News Desk’s Ryan Minnaugh contributed to this article.