UPS has announced a decrease in anticipated revenue for 2025, down to $89 billion, primarily due to a significant reduction in business with its largest customer, Amazon. As e-commerce demand declines, UPS is refocusing its efforts on more lucrative areas, such as healthcare and small businesses. Following a disappointing Q4 revenue result of $25.3 billion, which fell short of expectations, UPS is directing its strategy to enhance profitability, despite the risk of losing substantial volume from Amazon's shipments.
"Amazon is our largest customer, but it's not our most profitable customer," CEO Carol Tomé told investors on a conference call Thursday. UPS aims to pivot towards higher-margin business segments.
UPS expects revenue of about $89 billion for 2025, down from $91.1 billion in 2024, as it grapples with declining demand and shifts focus from Amazon.
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