UPS has revealed plans to decrease Amazon package deliveries by more than 50% by mid-2026. This decision has led to a 17% drop in its stock value. The shift will impact around $10.7 billion in revenue, which makes up 11.8% of UPS's total business in 2024.
By redirecting its attention to more profitable services like healthcare logistics, UPS aims to achieve cost savings of $1 billion through shutting down facilities and workforce modifications. The company anticipates a decrease in revenue to $89 billion in 2025, falling short of the $95 billion projected by analysts.