Thousands of jobs at the US Postal Service (USPS) and United Parcel Service (UPS) are on the chopping block this year as both organizations move to streamline operations in response to mounting financial pressure and the economic impact of President Donald Trump’s tariff policies, according to a report by the Los Angeles Times.

UPS announced last week it will cut 20,000 jobs—around 4 per cent of its global workforce—and close 73 distribution centers by the end of June. The job cuts are part of a broader plan to modernize and automate 400 facilities in the company’s network.

The changes come after UPS struck a deal with Amazon, its biggest customer, to reduce business operations by more than 50 per cent by mid-2026.

Meanwhile, USPS is also reducing its workforce. Former Postmaster General Louis DeJoy revealed in March that the Postal Service would eliminate 10,000 jobs and implement budget cuts through the Department of Government Efficiency.

The USPS, which employed over 533,000 people in 2024, has reported losses nearing $100 billion, with projections suggesting an additional $200 billion in future deficits.

The USPS restructuring will unfold in two phases—beginning April 1 and continuing from July 1—with expected impacts on mail delivery services.

UPS has stated that its automation-driven changes will not disrupt customer experience, though the USPS has indicated some service changes are likely.