UPS Stock News: Revenue Slips as Amazon Volumes Halve

United Parcel Service (UPS) expects a \$2 billion revenue decline in 2025, partly due to halving volumes with Amazon. The company aims to reconfigure its U.S. network and insource deliveries through SurePost, a home-delivery service. Shares dropped 12.7% in premarket trading.

UPS Stock News: Revenue Slips as Amazon Volumes Halve

1. What is the expected revenue for UPS in 2025?
   The expected revenue for UPS in 2025 is about \$89 billion.
2. Why is UPS’s revenue expected to decline?
   The decline is primarily due to a planned reduction in volumes with Amazon.com.

3. How much will Amazon-related volumes be reduced?
   Amazon-related volumes will be reduced by more than 50% by the second half of 2026.

4. What changes is UPS making to its U.S. network?
   UPS is reconfiguring its U.S. network and insourcing deliveries through SurePost.

5. When did UPS end its arrangement with the U.S. Postal Service?
   UPS ended its arrangement with the U.S. Postal Service on January 1, 2025.

The decline in UPS’s projected revenue and the planned reduction in Amazon-related volumes highlight significant changes in the company’s strategy. These moves aim to adapt to shifting market dynamics and ensure long-term financial stability. Investors and analysts will closely monitor these developments to gauge their impact on UPS’s future performance.