UPS Reforms Its Network by Shedding Amazon's Low-Margin Freight
UPS is accelerating its plan to reduce Amazon as a customer, cutting tens of thousands of jobs and closing facilities in 2025 and planning more in 2026 to shrink low-margin volume and consolidate its network. While revenue will dip as Amazon's business fades, UPS is pushing higher-margin, per-piece revenue growth and expects margin improvement long term as the network is streamlined, with 2026 guidance around a 9.6% adjusted operating margin after earlier optimism for higher margins.