UPS layoffs signal economic warning, could impact metro Atlanta
UPS layoffs signal economic warning
Sandy Springs-based shipping giant UPS is laying off 20,000 workers and closing 73 facilities, sparking concerns among economists and labor leaders about the potential ripple effects across the economy—especially in metro Atlanta.
SANDY SPRINGS, Ga. - Sandy Springs-based shipping giant UPS is laying off 20,000 workers and closing 73 facilities, sparking concerns among economists and labor leaders about the potential ripple effects across the economy—especially in metro Atlanta.
What we know:
The company announced the move earlier this week as part of a cost-cutting strategy, with expectations to save $3.5 billion in 2025. The layoffs represent about 4% of the company’s global workforce.
What they're saying:
Emory University business professor Thomas Smith, who studies labor economics, told FOX 5’s News Edge that this could be a warning sign of a broader economic downturn.
"A lot of economists, myself included, have identified that the economy could very well be slipping into an economic recession," Smith said. "I don’t think we’re there yet, and I don’t think it’s a certainty—but these layoffs are indicative of the economy being a little challenging."
UPS said part of the reason for the restructuring is a reduction in business with Amazon. In its quarterly earnings report, the company also cited new tariffs under President Trump as a potential business risk, particularly with rising costs of imported goods from countries like China.
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"With the tariffs, it’s going to cost people a lot more to order certain products," Smith said.
The company has not disclosed how many of the 20,000 job cuts will affect workers in metro Atlanta. In a statement, UPS said it is "committed to supporting our employees throughout this process" but will not provide further details until all impacted employees are notified.
The other side:
Meanwhile, the Teamsters Union is pushing back. A union representative told FOX 5, "If the company intends to violate our contract or makes any attempt to go after hard-fought, good-paying Teamsters jobs, UPS will be in for a hell of a fight."
Smith warned that the layoffs could have a ripple effect on the broader economy, especially locally.
"The economy is interconnected," he said. "Those 20,000 jobs that are lost are going to lead to lower consumption across the Atlanta metro area—that could impact other people’s jobs."
UPS has not announced when the layoffs will be finalized.