UPS Reduces Business with Amazon
United Parcel Service (NYSE: UPS) is reducing its business with Amazon by over 50%, which is expected to be completed in the latter half of 2023. This move is projected to result in a revenue decrease of approximately $5 billion, or 6% of UPS’s $88.7 billion revenue from last year.
As part of this strategy, UPS will cut 30,000 jobs in 2023, building on last year’s elimination of 48,000 positions. The company aims to streamline operations and improve profit margins, targeting margins that have been in the single digits (6-7%) recently. UPS CEO Carol Tomé stated that 2026 will be a critical year for executing the company’s growth strategy despite potential short-term setbacks.
