UPS is cutting 20,000 jobs and closing some facilities as the delivery company reduces the amount of Amazon packages it handles.

The company said it plans to conduct the layoffs before the end of the year and close 73 facilities in buildings it owns or leases by the end of June — with more closings to possibly to come at a later date.

“The actions we are taking to reconfigure our network and reduce cost across our business could not be timelier,” CEO Carol Tomé said in a statement on Tuesday. “The macro environment may be uncertain, but with our actions, we will emerge as an even stronger, more nimble UPS.”

UPS and Amazon earlier this year agreed to pare back their shared business by more than 50%.

“Amazon is our largest customer but it’s not our most profitable customer,” Tomé said at the time.

Their output of 24 million packages a day on average (about 5.7 billion a year) represents about a quarter of all shipments in the U.S., according to the global shipping and logistics firm Pitney Bowes.

The company has about 490,000 employees and operates in over 200 countries. It previously announced it was cutting 12,000 jobs in 2024.

UPS and the Teamsters Union avoided a strike in 2023 and signed a five-year contract.

Trump administration tariffs have already slowed down trade and led to cost cutting ahead of an anticipated drop in demand.

The company recently unveiled its “Global Checkout” feature that tells customers upfront what they will have to pay in duties, fees and taxes.