Blaming Trump Tariffs Alone for 20,000 Laid Off UPS Workers Hides Key Factor: Stock Buybacks and Wall Street Greed
Blaming the Trump tariffs for every sin imaginable may be emotionally satisfying, but while it may end up being a factor, it is not the whole story here.
It’s such a tempting storyline: UPS announces that it will lay off 20,000 workers, citing “changes in the global trade policy and new or increased tariffs.”
There you have it. A perfect example of how Trump’s tariffs are screwing working people, many of whom voted for him.
Or is it?
UPS, like every major U.S. corporation, is in business to extract as much wealth as possible and shovel it to its shareholders and top executives in the form of stock buybacks and dividends. And like every major corporation, UPS will pay for that wealth extraction by laying off as many workers as possible. That may reduce the production of goods and services, but so be it, if it generates more money for shareholders and executives. In big business today, wealth extraction always comes first.
This is not a company struggling to make ends meet.
Let’s look at some of UPS’s numbers. In 2023, the company authorized $5 billion in stock buybacks, starting in 2024 with $500 million and another $5.5 billion in dividends. In 2025, UPS plans to spend another $1 billion on stock buybacks, as well as $5.5 billion more in dividends. In 2024, not incidentally, UPS posted $8.5 billion in profits. This is not a company struggling to make ends meet.
(Stock buybacks are when a corporation uses its own funds to repurchase shares and thereby raise the price of those shares, which greatly pleases its largest shareholders. Before deregulation in 1982, a company buying its own shares was considered illegal stock manipulation.)
To maintain this wealth pump for its investors and top officers, who are primarily compensated with stock incentives, cash needs to be generated and replenished. The simplest way to do that without acquiring more debt is to lay off workers.
Before the deregulation of Wall Street that came with the Reagan and Clinton administrations, no corporate manager would dare to lay off workers during profitable periods. To do so was a sign of poor management, a blemish on the CEO and his/her team. Workers and their communities were considered corporate stakeholders, right along with shareholders.
But after deregulation, the only stakeholder that mattered was the shareholder. The hell with workers and their communities. Companies began moving corporate headquarters to the sites of the highest governmental bidders, and in short order layoffs during good times became a symbol of smart management. Greed is good reigned supreme. (Please see Wall Street’s War on Workers for the gory details.)
Do not lend any credibility to corporate PR announcements. Their job is to do all they can to obscure how much they are shoveling to Wall Street.
The Teamsters union, which represents 300,000 UPS hourly workers, will fight these recently announced layoffs. Sean O’Brian, who spoke at the Republican national convention in 2024, sees any Teamsters layoffs as a violation of the contract:
United Parcel Service is contractually obligated to create 30,000 Teamsters jobs under our current national master agreement. If UPS wants to continue to downsize corporate management, the Teamsters won’t stand in its way. But 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.
We can be sure that the Teamsters will be looking closely at UPS’s finances, especially the large amounts going to stock buybacks and dividends. They will not sacrifice their members’ jobs on the altar of obscene wealth extraction.
Will the Trump tariffs have a major impact on UPS jobs?
We just don’t know that yet. But one thing we know for sure: Do not lend any credibility to corporate PR announcements. Their job is to do all they can to obscure how much they are shoveling to Wall Street. Their credo: The extent and consequences of the wealth extraction machine must never be revealed.
Blaming the Trump tariffs for every sin imaginable may be emotionally satisfying. But letting larger corporations and their Wall Street handlers off the hook when it comes to job destruction, which the Democrats have done for more than a generation, is in large part why we have Trump in the first place.
