By Dean Seal
UPS is breaking away from Amazon.com.
The package-delivery company said it was cutting volumes from its largest customer by half, and warned its revenue would come in about $6 billion lower than Wall Street expected this year.
Shares in UPS fell about 12% in premarket trading Thursday.
UPS didn't identify the client, but Amazon is its biggest customer. The ecommerce company accounted for roughly 12% of UPS's revenue in 2023. Amazon, however, has been handling more of its own deliveries.
-- UPS said it expected revenue to come in at about $89 billion for 2025, down from $91.1 billion in 2024. This is below the $95 billion expected by analysts polled by FactSet.
-- The company said it had reached an agreement with its top customer to lower volume by more than 50% by the end of 2025. UPS has also decided to insource all of its UPS SurePost products and reconfigure its U.S. network.
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January 30, 2025 07:55 ET (12:55 GMT)
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