Important Employer In Minnesota Says New Closures, Layoffs Looming
Living in Minnesota provides several advantages, which is why more than 5.7 million people call the state home.
Minnesota's overall high quality of life includes benefits such as excellent schools and healthcare, abundant outdoor opportunities, and a vibrant arts and culture scene.
From an economic standpoint, while recent statistics show that Minnesota's recent economic growth has been somewhat sluggish, lagging behind the national average, the state still has a diverse and robust economy, with significant concentration in life sciences, healthcare, and financial services.
However, a recent announcement from an important employer in Minnesota isn't going to help Minnesota's employment numbers, and it will also have a negative impact nationwide.
UPS Closing 73 Stores And Eliminating Over 20,000 Jobs
United Parcel Service (UPS) is the world's largest package delivery company in revenue. However, reports came out earlier this year that it was expediting its plan to reduce millions of deliveries for its largest customer, Amazon.com, which accounted for 11.8% of its overall revenue in 2024.
Recently, more troubling news arrived when UPS announced it is expected to close 73 stores nationwide and reduce its workforce by roughly 20,000 during 2025 due to "new or increased tariffs" and "changes in general economic conditions in the U.S. or internationally."
The formal announcement regarding layoffs was made on April 29 in the UPS first quarter earnings report, which also stated that the parcel delivery service made consolidated revenues of $21.5 billion, compared to $21.7 billion around the same time a year ago.
Consolidation efforts for UPS reportedly come as President Donald Trump's looming tariffs continue to impact U.S. and global trade, as companies across the country are reducing costs in preparation for a possible economic fallout.
The Impact In Minnesota
According to The UPS Store, there are 66 UPS Store locations in Minnesota. These independently owned and operated locations offer services like packing, shipping, printing, and more.
On November 17, 2024, the UPS customer service counter closed in Red Wing, Minnesota. A sign was posted on the door to announce the closure.
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Another UPS closure announced involved the Minneapolis Day Sort facility, where employees were scheduled for separation beginning April 13, 2025.
To what degree, if any, the recently announced tariff-related closures impact the UPS stores in Minnesota remains to be seen.
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