UPS Cuts Amazon Deal: Short-Term Pain For Long-Term Gain
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UPS plans to cut Amazon's volume by 50% by mid-2026 to focus on higher-margin business, expecting a short-term revenue dip but aiming for a 12% U.S. operating margin by Q4 2026. Strategic cost reductions will align operations with the new business mix.
February 13, 2025 | 2:00 pm
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UPS is cutting Amazon's volume by 50% by mid-2026 to focus on higher-margin business, expecting short-term revenue dip but aiming for a 12% U.S. operating margin by Q4 2026.
UPS's decision to cut Amazon's volume will likely lead to a short-term revenue dip, impacting stock prices negatively in the short term. However, the strategic focus on higher-margin business and cost reductions could lead to long-term profitability.
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