UPS Stock Drops 15% as Company Cuts Amazon Deliveries by Over 50% and Issues Weak Revenue Guidance

Benzinga

UPS shares fell over 15% Thursday after issuing weak revenue guidance and announcing plans to cut Amazon deliveries by more than 50% by late 2026. The shipping giant reported fourth-quarter revenue that missed analysts’ estimates. CEO Carol Tome stated that Amazon, while UPS’ largest customer, is not its most profitable. Amazon, which has expanded its logistics operations, said UPS requested the reduction in volume due to operational needs. UPS is restructuring its U.S. network and implementing cost-cutting initiatives to save $1 billion.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02UPS shares fell over 15 percent Thursday after issuing weak revenue guidance and announcing

00:07plans to cut Amazon deliveries by more than 50 percent by late 2026. The shipping giant

00:12reported fourth quarter revenue that missed analyst estimates. CEO Carol Tome stated that

00:18Amazon, while UPS's largest customer, is not its most profitable. Amazon, which has expanded its

00:25own logistics operations, said UPS requested the reduction in volume due to potential needs.

00:30UPS is reconstructing its U.S. network and implementing cost-cutting initiatives

00:35to save $1 billion. For all things money visit benzinga.com slash gstv

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