UPS CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer, but it is not the company’s most profitable customer.

UPS plans to shrink profit-denting Amazon volumes more than 50% by the second half of 2026 - five times faster than it did between 2021 and 2024. That will allow the company to focus on fewer but more lucrative deliveries while it also cuts about $1 billion in costs for buildings, trucks, planes and labor, executives said.

UPS projected a decline in revenue for the current year, with a key factor being plans to phase out more than half of the business it does with Amazon over the next 18 months.

UPS is continuing to withdraw from its business relationship with Amazon. By the second half of 2026, UPS said it will cut its shipping volumes for Amazon by more than 50 percent under the companies' revised arrangement.

United Parcel Service Inc. shares plunged after the company projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year and prompting it to slash its low-margin business with Amazon.