United Parcel Service reported first-quarter profit that beat market expectations and said it will cut 20,000 jobs as the parcel giant looks to trim costs in an uncertain economy, sending its shares up more than 5% before the bell on Tuesday.

United Parcel Service's first-quarter profit beat market estimates and the parcel delivery giant said it will cut 20,000 jobs to lower costs in an uncertain economy and in anticipation of weak volumes from its largest customer,