UPS cuts 500,000 Amazon packages

United Parcel Service said it cut the Amazon packages moving through its network by about 500,000 pieces a day in the first quarter. (about.ups.com) (supplychaindive.com) Chief executive Carol Tomé said on the April 28 earnings call that UPS also closed 23 additional buildings during the quarter as it reworked its U.S. network. (about.ups.com) (finance.yahoo.com) UPS reported first-quarter 2026 revenue of $21.2 billion, adjusted diluted earnings per share of $1.07, and diluted earnings per share of $1.02. Net income fell to $864 million from $1.19 billion a year earlier. (about.ups.com) (finance.yahoo.com) The Amazon pullback is part of a plan UPS announced earlier to cut that customer’s volume by more than 50% by June 2026. Tomé said the first quarter was a “critical transition period” for that strategy. (finance.yahoo.com) (about.ups.com) Amazon accounted for 8.8% of UPS revenue at the end of the quarter, down from 10.6% in 2025, according to executives cited by Supply Chain Dive. UPS said it is replacing lower-margin volume with shipments that need tighter handling and command higher yields. (supplychaindive.com) Tomé said UPS is targeting healthcare, business-to-business traffic and data-center-related shipments as it shrinks exposure to less profitable e-commerce parcels. Those categories fit a network built for time-definite and complex deliveries rather than the cheapest possible last mile. (supplychaindive.com) (finance.yahoo.com) UPS also said it shifted part of its Ground Saver volume back to the U.S. Postal Service for final delivery and is working toward a $3 billion cost-out target for 2026. (about.ups.com) (marketbeat.com) The company reaffirmed its full-year 2026 guidance, including revenue of about $89.7 billion and a consolidated operating margin of 9.6%. UPS said the Amazon reduction is nearly complete, with the June deadline still in view. (cnbc.com) (supplychaindive.com) After decades of handling Amazon parcels, UPS is turning a huge customer into a smaller one and redesigning buildings, routes and aircraft around that choice. The next test is whether the higher-margin freight arrives fast enough to offset the volume it is giving up. (finance.yahoo.com) (about.ups.com)