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.

Shares of United Parcel Service suffered their worst day ever on Thursday, after the package-delivery giant announced an agreement that would cut its business with Amazon.com Inc., its largest customer,

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.