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

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

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.

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.

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.

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.

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

UPS cutting Amazon deliveries in half, expects $89B in 2025. Stock down 13% as company reorganizes due to slow sales.

In the fourth quarter, UPS brought in $25.3 billion, a 1.5% rise over last year. Operating profit increased 11.2% to $3.1 billion; adjusted profits per share came in at $2.75, above consensus projections of $2.53. From operations, the corporation brought in $10.1 billion in cash; via buybacks and dividends, it returned $5.9 billion to investors.