UPS Stock Drops 15% After Cutting Amazon Shipping Volumes by Over Half

The logistics giant forecasts weaker 2025 revenue and shifts its focus to higher-margin customers and efficiency improvements.

UPS announced it will reduce Amazon shipping volumes by more than 50% by mid-2026, citing low profitability from the partnership.
The company forecasted 2025 revenue of $89 billion, falling short of analysts' expectations of $94.88 billion.
UPS reported Q4 2024 revenue of $25.3 billion, slightly below the $25.42 billion expected, though adjusted EPS exceeded forecasts.
CEO Carol Tomé emphasized a strategic pivot toward higher-margin sectors such as healthcare, small businesses, and international markets.
UPS is implementing a multiyear efficiency initiative, including facility closures and workforce reductions, aiming to save $1 billion annually.