From CNBC: 2025-01-30 16:37:20

Shares of UPS dropped 14% after announcing plans to cut deliveries for Amazon by over 50% by the second half of 2026. The shipping giant aims to save $1 billion through network reconfiguration and efficiency initiatives. Amazon offered to increase UPS’ volumes, but UPS forecasted lower 2025 revenue at $89 billion.

UPS has faced declining package volume from Amazon and other carriers as Amazon builds its own logistics empire. UPS has focused on cost-control measures and catering to more profitable delivery customers, such as health care and small businesses. In recent quarters, UPS benefited from increased volume from bargain retailers Temu and Shein.

Last January, UPS laid off 12,000 employees to achieve $1 billion in cost savings. Amazon spokesperson Kelly Nantel stated that UPS requested a volume reduction due to operational needs, and Amazon respects their decision. Amazon has been expanding its in-house logistics operations to rival or exceed major carriers like UPS and FedEx.



Read more at CNBC:: UPS shares tank after weak guidance, plan to slash Amazon deliveries