The United Parcel Service plans to close 164 operations and 73 buildings by June and cut 20,000 positions by the end of the year. This follows the delivery company closing 11 facilities last year.

The moves are part of the UPS’ largest network reconfiguration in its history as it decreases its deliveries for Amazon, officials said on an earnings call on Tuesday.

“These actions will enable us to expand our US domestic operating margin and increase probability,” Brian Dykes CFO of UPS, said on the earnings call.

About two thirds of the locations are on the East Coast. UPS has a number of locations in the Harrisburg area. It’s not clear if any of the closings are in the Capital Region. A spokesperson with UPS declined at this time to identify the locations that are closing.

“As announced on our Q1 earnings call, we are executing the largest network reconfiguration in UPS history. This strategic initiative will optimize the capacity of our network to align with expected volume levels and enhance productivity through additional automation. The reconfiguration will impact positions, and we are committed to supporting our employees throughout this process,” Karen Tomaszewski Hill, a spokesperson for UPS said in a statement.

“While our building footprint is changing, our record of reliable pickup and delivery is not. We remain committed to providing industry-leading service to customers in more than 200 countries and territories around the world.”

UPS plans to reduce the deliveries it does for Amazon by more than 50% by June 2026.

“Note that the volume we are transitioning out is Amazon’s Fulfillment Center outbound volume. This volume is not profitable for us nor a healthy fit for our network,” Carol Tome, CEO of UPS, said on the earnings call. “The Amazon volume we plan to keep is profitable and it is healthy volume. In other words, volume where we can add value like returns and seller fulfilled outbound volume.”

The company also plans to increase productivity through additional automation.

“With this configuration we will also lessen our dependency on labor, reduce the capital requirements needed to run the network and will drive structural operating margins and return on invested capital improvement,” Tome said.

In January, UPS officials said when Amazon’s contract came up this year, it decided to reassess the relationship and decided that volume reduction was the best alternative, according to WXPI.

The TV station reported that Tome said on the previous earnings call that while Amazon is its largest customer it isn’t its most profitable one and its margin is very dilutive to the U.S. domestic business.

UPS announced on Tuesday that its revenue during the first quarter was $21.5 billion, a 0.7% decrease from the first quarter of 2024.