UPS Laid Off 20,000 People—And the Real Villain Is the Livable Wage Movement
What You’re Being Told About the “Livable Wage” (And What’s Actually Happening)
The Surface Narrative
When UPS announced the layoff of 20,000 employees—roughly 4% of its workforce—the headlines pointed fingers in predictable directions: Amazon delivery slowdowns, global tariffs, economic uncertainty. It was positioned as a casualty of macro forces outside anyone’s control. In fact, Forbes framed the decision as a business response to softening e-commerce and global shipping strain.
But that’s not the full picture. It’s not even the most important part.
What’s missing is a much less convenient truth: the fallout from skyrocketing labor costs driven by union contracts and public pressure for a “livable wage.”
UPS didn’t just get hit by bad luck. They made a well-publicized deal with the Teamsters in 2023 that elevated the average full-time worker salary to over $100,000. This wasn't a top-performer reward—this was average across truck drivers, sorters, and back-office roles. It was celebrated as a win for the American worker. Just one year later, it’s a cautionary tale.
The Hidden Culprit
The union deal was lauded as historic. But inside UPS leadership, it introduced a crushing reality: margin compression. According to UPS’s own public disclosures, the contract sliced 35% off their margins. Let’s put that in perspective.
If your business sells a product for $100 and it costs $90 to produce, you’ve got a 10% profit margin—tight, but manageable. Now subtract 35% from that margin. You’re underwater. Operating on borrowed time. That’s the position UPS found itself in just months after the celebrated contract was signed.
Why does this matter?
Because businesses don’t survive on vibes or moral victories. They survive on margins. And when those margins disappear, the first thing to go is labor. Not out of cruelty—but out of operational necessity.
A Brutal Stat
Here’s the paradox: the very effort meant to protect workers—the fight for higher minimums, flat wages, and across-the-board raises—can become the reason thousands lose their jobs.
It’s not just UPS. Companies like HP, Wayfair, and Amazon are all trimming their workforces—some for the third or fourth year in a row. And in each case, the underlying cause isn't just automation or market shifts. It's the simple math of wages rising faster than value is being produced.
Yes, some employees now earn six figures. But the business pays closer to $150K per head once you factor in union fees, benefits, healthcare, and time off. When the math stops working, the story stops being about fairness—and starts being about survival.
If you're relying on wage policy alone to protect your livelihood, you're playing a dangerous game. Because once the public praise dies down and the P&L sheets tighten up, even the most “progressive” compensation models can collapse under their own weight.
And that brings us to the real question…
If higher wages aren’t the path to job security, what is?
Let’s look at the alternative—and why a value-based career strategy puts you in control, no matter what the economy or your employer decides next.
The Real Cost of a Livable Wage: Margin Compression and Job Losses
Let’s stop talking theory and look at the fallout. This isn’t about ideology—it’s about pattern recognition. Across multiple companies and industries, we’re watching the same equation play out: rising labor costs → margin compression → mass layoffs.
And the common denominator? A well-intentioned but economically fragile push for “livable wages” without value-based output.
Let’s walk through the case studies.
Case Study 1 – UPS
UPS didn’t lay off 20,000 people because of Amazon alone. They did it because they couldn’t absorb the consequences of the 2023 Teamsters deal, which ballooned the average full-time wage past $100K.
Even more staggering? That deal alone triggered a 35% margin loss.
Now imagine you’re running a logistics company with tight profit lines. You’ve just locked in record-high wages across your entire workforce, and then a market shift hits—Amazon slows down deliveries, or tariffs tighten import volume. You no longer have the cushion to adapt. You only have one option left: reduce labor costs fast.
That’s how celebration turns into severance.
Case Study 2 – Wayfair
Wayfair has become a masterclass in slow-motion collapse. Since 2022, they’ve gone through five rounds of layoffs—and the most recent ones were sparked by pulling out of the German market entirely.
Why leave? Because wage mandates and increased labor regulations outpaced revenue growth. It became more expensive to operate than it was worth. So they exited.
And that exit rippled back to U.S. teams. Domestic workers supporting international logistics, marketing, and ops were cut. Not because of their performance—but because of a bloated wage framework that couldn’t flex when things got tight.
The message was clear: when wages rise faster than margins, even unrelated roles become vulnerable.
Case Study 3 – HP & Amazon
HP recently announced another 2,500 layoffs—5% of their workforce. Their reasoning? Cost savings and margin compression. The “livable wage” pressure had quietly crept into their comp structures too, forcing leadership into a choice: keep unprofitable labor or cut fast and invest in tech.
They chose the latter.
Amazon’s moves have been more methodical—but equally revealing. Since 2022, they’ve executed rolling layoffs every single year, each wave accompanied by public statements about automation, AI, and operational efficiency.
Here’s what they’re not saying out loud: AI is only cheaper than human labor when human labor gets too expensive. And right now, it’s getting expensive fast.
When wages become fixed and value remains flat, automation isn’t a luxury—it’s a lifeline.
Follow the Margins, Not the Media
It’s easy to blame layoffs on the economy, politics, or “the greed of corporations.” But businesses don’t fire people for sport—they do it when the numbers stop working. And the numbers stop working when wages become a line item that leadership can’t justify with corresponding productivity.
The painful irony is that wage pressure often spikes when business is good—during economic rebounds or post-recession recovery. That’s when companies are most vulnerable to public sentiment and employee demands. But once margins thin and volatility returns, those same deals become liabilities.
That’s why the livable wage conversation, while emotionally resonant, is economically fragile. It fails to factor in business reality: risk doesn’t disappear when wages rise. It just gets transferred. And more often than not, it gets transferred to the employee in the form of job loss.
So what’s the alternative?
How do you protect your income without pushing your company into a corner?
That’s where the value-based wage strategy comes in—and why it’s the single smartest mindset shift you can make in today’s job market. Let’s explore it next.
Value-Based Pay > Livable Wage: A Smarter Way to Stay Employed
The livable wage movement started with good intentions. But intention doesn’t protect jobs—value does. If you want true career security, higher income, and long-term leverage in your role, you need to flip your strategy from “what am I owed?” to “what am I worth?”
It’s not just a mindset shift. It’s the only move that makes sense in a volatile, tech-driven labor market.
Why Value-Based Wages Work
Value-based pay ties compensation to output, not emotion. That means you earn more by becoming more valuable—by solving harder problems, creating measurable impact, or enabling efficiency that saves time and money.
This is how companies justify keeping you on during a downturn. Not because you’re “fairly paid,” but because you’re worth more than the alternative—whether that’s a cheaper hire, a contractor, or an automated system.
A 2024 Deloitte study confirms this: companies investing in “value-aligned” talent were 2.7x more likely to retain roles during cost-cutting cycles. The ROI isn’t just in output—it’s in adaptability and resilience.
And here’s the kicker: value-based professionals don’t just survive automation—they lead it. They’re the ones learning AI tools, spotting inefficiencies, and guiding tech adoption instead of being replaced by it.
The Win-Win That No One Talks About
There’s a silent benefit to holding wages steady: it keeps the cost of living down.
When companies are forced to raise wages across the board—without corresponding increases in value—they respond the only way they can: raising prices. That $18 burger? That $3,000 rent? Those aren’t caused by corporate greed. They’re the ripple effects of artificially inflated labor costs, among other variables such as regulation and a lack of free-market enterprise (these other factors are for a different day).
Which means the very movement pushing for livable wages is accidentally creating a world where the baseline keeps rising—and no one ever actually “arrives.”
It’s a self-fulfilling loop:
Workers demand higher pay
Employers raise prices to cover it
Cost of living rises again
Workers need even more to “survive”
And around we go. No structural gain. Just economic treadmill.
Contrast that with a value-based system: when pay rises because productivity does, it’s earned and sustainable. Prices stabilize because margins remain healthy. Employees make more without driving inflation—and that’s how you actually build a livable life.
The Intrapreneur Mindset
So what does this mean for you?
It means you stop waiting for permission and start thinking like an owner. Intrapreneurs don’t just do their job—they improve it. They learn new tools before they’re asked to. They track their wins. They treat the business like it’s their own.
Want to stay employed? Make it expensive to replace you.
Want to grow? Make your value visible, not just your effort.
Want to lead? Help others do the same.
This is how you future-proof your paycheck—and protect your company at the same time.
Because value scales. Entitlement doesn’t.
And if you’re wondering how to actually start applying this mindset today, the next section breaks it down into four simple, high-leverage steps you can start executing before the week is over. Let’s build your moat.
Flip the Script: 4 Steps to Future-Proof Your Paycheck
You can’t control market downturns, tariff policy, or executive decisions—but you can control how replaceable you are. That’s what future-proofing is really about: creating career leverage so strong that automation, layoffs, and cost-cutting efforts pass you by.
This isn't wishful thinking. It’s a strategy—and it starts with ownership.
Here are four tactical steps to help you stop chasing wage increases and start becoming indispensable.
1. Have the Hard Conversation
Don’t wait to get blindsided by budget cuts or tech adoption. Go to your manager and ask:
“Where is the company heading with automation, AI, or operational changes—and how can I get involved early?”
Frame the question with curiosity and commitment. Make it clear you’re not pushing back—you’re leaning in. According to McKinsey, teams that proactively communicate about transformation are 2x more likely to retain top talent during transitions.
Most employees hide from these conversations. Leaders remember the ones who initiate them.
2. Identify & Learn the Tools
Every industry has tools that are redefining value. In logistics, it’s robotics. In marketing, it’s generative AI. In HR, it’s predictive analytics.
Your job is to figure out which tech your role will intersect with next—and learn it before you’re told to.
Start simple:
Identify the top 3 technologies shaping your department
Watch 3 free tutorials on each
Pick one and go deep: take a Udemy course, read case studies, try it inside your workflow
Knowledge isn't power. Applied knowledge is.
3. Build a Weekly Upskill Ritual
Future-proofing isn’t a one-time sprint—it’s a habit. You need a system.
Start with an hour a week. Literally block it on your calendar. Call it “ROI Hour” if you need to.
Use the time to:
Study automation trends in your field
Audit inefficiencies in your current role
Build workflows that reduce friction, improve outputs, or create measurable savings
If you can stack 52 value-building hours a year into your job on the clock, you’re not just learning—you’re compounding.
4. Rally the Troops
This is the multiplier.
Once you’ve started building momentum, loop in others. Bring your colleagues into the upskilling process. Host informal walkthroughs. Share shortcuts. Ask for input. You’ll stand out as a cross-functional leader without needing a new title.
This is what it means to become the person who turns chaos into clarity. The one who leads through transition instead of being crushed by it.
As Harvard Business Review puts it, adaptive teams outperform reactive ones by 30% in times of disruption—and it always starts with a single catalyst.
Be that catalyst.
You don’t need to beg for a raise when you’re the person keeping the business operational through change.
You earn your raise by making your value so obvious that your company would be foolish not to invest in you.
And if you're ready to take that positioning even further—to make your skills impossible to ignore and recession-proof your career long before the next round of cuts—keep reading. Because in the next section, we’re going to tackle the hard truth most people avoid... and why shifting from a wage mindset to a worth mindset changes everything.
The Hard Truth: Livable Wage Thinking Is a Trap
It feels good to demand a livable wage. It feels righteous. Fair. But in practice, that mindset creates a trap—a loop that keeps you disempowered, reactive, and increasingly replaceable.
Here’s the truth: you will never earn lasting income security by asking for more without becoming more.
And yet, that’s what the livable wage narrative encourages—more money for the same output, enforced by policy or pressure instead of value. It disconnects income from contribution, and that’s where the trap begins.
Ask Yourself This:
Am I creating $100,000 in value—or just expecting it?
If the answer is unclear, your job is already at risk.
Employers don’t pay based on need. They pay based on market value, margin potential, and performance. When wages rise without an increase in value, businesses automate, outsource, or eliminate roles to restore balance.
The data backs this up. According to the World Economic Forum, companies accelerating automation and AI investment are doing so specifically to reduce dependency on high-cost labor—not because the tech is better, but because humans priced themselves out.
That’s the cost of wage entitlement. You become less competitive by asking for more without showing more.
The Mindset Shift That Changes Everything
The alternative is ownership.
When you focus on increasing your value—not just your visibility—you escape the trap entirely. You start thinking like an operator. You align with business goals. You solve expensive problems. You create leverage that no algorithm can replicate.
This is what separates the future-proof professionals from the layoff-prone ones:
Visibility > Effort
Impact > Entitlement
Skill stacking > Security theater
You stop hoping someone will pay you what you “deserve,” and you start making yourself undeniably valuable—in any market, to any company, at any level.
What Comes Next
The temptation is to read this and think, “That’s a lot.” And it is. Because the old game—show up, do your job, wait for a raise—is dying. The new game rewards people who lead, learn, and adapt faster than the system can change around them.
But here’s the upside: you don’t need to change everything overnight. You just need to start.
So let’s break that inertia.
In the next section, you’ll get a tactical playbook to audit your value, spot your blind spots, and build a future-proof career plan—starting this week.
Set Yourself Up for Success
Reading is easy. Action is rare. If you want to break out of the wage trap and build a career that’s immune to layoffs, policy shifts, and automation—now is the moment to move.
Here’s how to start:
Tactical Action: Reclaim Your Value
Start by running a personal audit. Ask yourself:
What have I tangibly improved, optimized, or created in the last 90 days?
Where do I sit in the value chain—am I a cost, or an asset?
What skill, tool, or system—if mastered—would make me 2x more effective?
Don’t wait for permission. Build a 7-day sprint:
Identify one area in your workflow to automate or improve
Learn one tool or method that solves it
Apply it, measure it, document it
This alone sets you apart from 95% of employees.
Empowerment Reminder: You Are Not Powerless
Layoffs don’t always reward the weakest. They remove the least visible value.
When you stack skills, initiate conversations, and make your impact measurable, you shift from “nice to have” to “mission critical.”
The market doesn’t reward hope. It rewards leverage. And leverage is something you can build—no matter where you are today.
Watch This Next: Keep the Momentum Going
To dive deeper into actionable strategies, watch:
Q1 2025 Job Report – The most in-demand (and most laid off) jobs right now
Your Paycheck Won’t Save You – Get a framework not just getting a bigger paycheck but making better decisions with it
Consistency Wins – Stop looking for hacks and just simply be consistent.
And if you want weekly guidance, tools, and strategic thinking like this—join my Skool community or subscribe on LinkedIn.
Because the career you want isn’t given. It’s built. One smart decision at a time.
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