UPS CEO Carol Tome said on a call with investors that Amazon is UPS’ largest customer, but it is not the company’s most profitable customer.

UPS plans to shrink profit-denting Amazon volumes more than 50% by the second half of 2026 - five times faster than it did between 2021 and 2024. That will allow the company to focus on fewer but more lucrative deliveries while it also cuts about $1 billion in costs for buildings, trucks, planes and labor, executives said.

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.