UPS, the world’s largest package delivery firm, plans to reduce its workforce by approximately 20,000 positions during 2025, as the company reconfigures its network, winds down its relationship with Amazon, and responds to economic uncertainty around the ongoing Trump tariffs.

“The world has not been faced with such enormous potential impacts to trade in more than 100 years,” CEO Carol Tomé said on a company earnings call, Reuters reports.

The announcement came on Tuesday as the company disclosed that it earned $21.5 billion in consolidated revenues and $1.7 billion in operating profit in the first quarter of 2025.

The company also said it will likely close 73 leased and owned buildings by the end of June, and expects to record between $400 million and $600 million in restructuring expenses related to retirements, leases, consulting fees, and employee separation benefits.

UPS also nodded to ongoing concerns around the global economic environment, and said it would not provide any updates on its full-year outlook.

In January, UPS announced it would eliminate more than half of its business with Amazon by 2026, shifting away from its largest customer in pursuit of higher margins. The firm is also shifting away from the U.S. Post Office for last-mile delivery and reconfiguring its network in the hopes of generating $1 billion in savings, according to the Wall Street Journal.

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

Amazon said Tuesday it continues to have a “strong working relationship” with UPS.

“Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision,” Kelly Nantel, an Amazon spokesperson, told CBS News. “We’ll continue to partner with them and many other carriers to serve our customers.”

UPS isn’t the only company grappling with tariff-related issues.

On Tuesday, the White House blasted Amazon over reports it was planning on adding disclaimers showing how much the administration’s tariff plans could raise prices.

“This is a hostile and political act by Amazon,” Press Secretary Karoline Leavitt told reporters. “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?”

Amazon later said it was only considering such a move, but that it was “never approved and is not going to happen.”