United Parcel Service (UPS) shares have dropped almost 30% this year due to lower second-quarter domestic parcel volume and revenue. The company’s aggressive cost savings plan aims to save $3.5 billion amidst tariff uncertainty and competition. UPS is shifting focus to healthcare and B2B logistics for higher margins as it navigates a changing market.

UPS faces challenges in consumer e-commerce, with a 10.9% decline in Q2 2025. Ending its partnership with Amazon led to a 15% stock price drop. Despite this, UPS sees potential in healthcare and B2B deliveries for profitability. The Efficiency Reimagined plan includes closures and job cuts to save $3.5 billion in 2025.

Investors are cautious about UPS’s recovery, but the company’s focus on higher-margin customers and cost-cutting measures may lead to long-term growth. While results may take time to materialize, UPS’s logistics expertise could make it an attractive investment at current prices. UPS is looking to rebound from recent challenges in the carrier industry.

Read more at Nasdaq: UPS Stock Continues to Fall in 2025. Is There Room for Recovery?