Story perspectives

UPS Slashes Amazon Deliveries, Shares Plummet 14%

2/1/2025

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Summary

Story summary

UPS intends to reduce delivery volume with Amazon by over 50% by mid-2026, leading to a 14% drop in shares on January 30, 2025.
CEO Carol Tomé emphasized that Amazon, while UPS's largest customer, is not the most profitable, prompting a shift to higher-margin business.
UPS projects 2025 revenue at $89 billion, falling short of the $94.9 billion expected by analysts.
The company plans to save $1 billion through cost-cutting measures, including layoffs and operational restructuring.

History

Historical Context

UPS's decision to cut delivery volume with Amazon echoes the 1997 UPS strike, where labor demands reshaped corporate strategies. Just as UPS pivoted to address worker grievances then, today’s shift reflects a need for higher margins over reliance on a single customer, illustrating the ongoing evolution of corporate priorities.

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Story summary

UPS intends to reduce delivery volume with Amazon by over 50% by mid-2026, leading to a 14% drop in shares on January 30, 2025.
CEO Carol Tomé emphasized that Amazon, while UPS's largest customer, is not the most profitable, prompting a shift to higher-margin business.
UPS projects 2025 revenue at $89 billion, falling short of the $94.9 billion expected by analysts.
The company plans to save $1 billion through cost-cutting measures, including layoffs and operational restructuring.

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