Logistics company United Parcel Service (UPS) has announced that Amazon (AMZN) packages sent through its service will decrease by over 50% by

United Parcel Service (UPS) shares plunged 14% on Thursday after the company announced plans to reduce its business with Amazon by more than 50% by June 2026.

The company said it has reached an agreement with its largest customer to lower volumes by 50 percent, sparking a sell-off.

Shares of parcel delivery company UPS (NYSE:UPS) fell 17.6% in the morning session after the company reported weak fourth-quarter results and provided full-year revenue guidance, which missed significantly.

UPS has been shipping Amazon packages for nearly 30 years, she added. The Seattle-based online retailer accounted for nearly 12% of UPS' total revenue in 2024, Tomé said. The company reported $91.1 billion in revenue for the fiscal year.

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 (UPS) dropped 15% on Thursday, marking its worst day ever, after the company announced a significant reduction in its business with Amazon (AMZN), its largest customer.

Today's bear gap has UPS falling to more than four-year lows and its largest single-day percentage drop in history. The equity is on the short sell restricted (SSR) list amid the volatility, and sports a 30% year-over-year deficit.

Logistics company United Parcel Service (UPS) has announced that Amazon (AMZN) packages sent through its service will decrease by over 50% by

Investors are displeased, but the strategy of moving away from lower-margin deliveries makes sense in the long run.

UPS announced a seismic shift in the relationship with its largest customer, Amazon, prompting a sharp stock price drop Thursday morning.