United Parcel Service will halve its Amazon package volume to bolster its profitability, but the unexpected move sent the stock tumbling Thursday. Why it matters: UPS gets nearly 12% of its revenue from Amazon deliveries,

UPS announced a seismic shift in the relationship with its largest customer, Amazon, prompting a sharp stock price drop Thursday morning. The Georgia-based logistics company will cut the volume it moves for the retailer by more than 50% by the second half 2026,

Shares of United Parcel Service suffered their worst day ever on Thursday, after the package-delivery giant announced an agreement that would cut its business with Amazon.com Inc., its largest customer,

United Parcel Service Inc. shares plunged after the company projected annual revenue well below expectations, telling investors that a long-awaited rebound in demand for its parcel services won’t arrive this year and prompting it to slash its low-margin business with Amazon.

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.