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.

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

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

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.

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.

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.