UPS Chief Executive Officer Carol Tomé said the company has completed its "Amazon glide-down," scaling back low-margin parcel volume from the e-commerce giant.
This transition marks a strategic shift for the shipping company as it attempts to decouple its profitability from a high-volume, low-return relationship. By reducing its reliance on Amazon shipments, UPS aims to improve overall profit margins, and stabilize its financial trajectory for the current year.
Speaking on Bloomberg Television's "The Close" and in a CNBC interview, Tomé said that the process is now finished. "The Amazon glide down is behind us," Tomé said. She said in a separate interview that the company was "delighted" to have completed the transition.
The shift comes as UPS updates its financial expectations for 2026. The company projects revenue of $91.2 billion [1] and earnings per share of $7.22 [1]. A UPS spokesperson said that the completion of the glide-down is boosting the company's outlook for the remainder of the year.
Despite the strategic move to prioritize higher-margin business, the market response was mixed. UPS shares fell following the release of the earnings outlook [2]. The company continues to focus on automation and operational efficiency to offset the loss of volume from the Amazon account.
Tomé's strategy involves pivoting toward sectors that offer better returns per package. This move aligns with a broader effort to modernize the network and reduce the volatility associated with a single dominant client — a goal that has defined the company's leadership priorities over the last several quarters.
“"The Amazon glide down is behind us."”
The completion of the 'glide-down' signifies a fundamental change in the UPS business model, moving away from a volume-heavy strategy toward a value-heavy one. While reducing Amazon's share of the network may lower total package counts, it allows UPS to reallocate capacity to more profitable shipping contracts. The dip in share price suggests investors remain cautious about whether these higher-margin gains can fully offset the loss of Amazon's massive scale.
