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What the “half” actually measures
The headline’s denominator is Amazon volume that UPS carried. It is not UPS’s overall package count, its U.S. domestic revenue, or its total network.
- What was cut: Amazon packages UPS handled, measured in pieces per day, with a target of more than a 50% reduction by the second half of 2026 (announced in January 2025, as reported by The Associated Press).
- What was not stated: any figure showing that Amazon volume went to zero, or that the cut equaled half of UPS’s combined volume.
- What the reporting does not describe: a complete end to the relationship. UPS’s own statements describe a reduction and network reconfiguration, not a termination of service.
Timeline of the Amazon glide-down
| Date | What was reported | Source and qualification |
|---|---|---|
| January 2025 | UPS announced it would cut Amazon volume by more than 50% by the second half of 2026. The companies had worked together for almost 30 years, and UPS reassessed the relationship as its contract came up. | AP report of the announcement. Contract terms are confidential and were not disclosed. |
| April 2025 | UPS planned to close 73 leased and owned buildings by the end of June and targeted about 20,000 job cuts as part of the network changes. | AP report. These were broader operational measures; the reporting does not attribute every closure or job change solely to Amazon volume. |
| End of 2025 | Amazon volume in UPS’s network was reduced by roughly 1 million pieces per day. | CEO Carol Tomé’s remarks on the January 2026 earnings call, as reported by AP. Figure is approximate. |
| Full-year 2026 plan | UPS intended to reduce another 1 million pieces per day over the year while continuing to reconfigure the network. | Stated plan from January 2026, as reported by AP. This was a plan, not a reported outcome. |
| July 28, 2026 | UPS said it had successfully completed its Amazon glide-down and related network reconfiguration initiatives as designed. | UPS announcement. The statement does not restate a per-day figure for 2026. |
Why UPS made the cut
UPS framed the decision as a profitability question rather than a size question. Tomé told AP’s reporters that “Amazon is our largest customer but it’s not our most profitable customer,” adding that “its margin is very dilutive to the U.S. domestic business.” In other words, a large account can still dilute a company’s domestic margins if the price it pays does not cover the cost of handling its packages.
That explanation is UPS’s stated rationale. The reporting does not provide independent data on Amazon’s per-package economics, so it is best read as the company’s view of why the volume was not worth keeping at the earlier level.
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Where the volume reduction stands now
Reduction through 2025
By the end of 2025, UPS reported that it had removed about one million Amazon pieces per day from its network. This is the most specific volume figure in the reporting, and it is an approximation from management’s earnings-call remarks.
The 2026 step
UPS’s January 2026 plan called for another million pieces per day to come out during 2026. Because the July 2026 announcement describes completion “as designed” without restating that figure, readers should treat the full two-step reduction as company-reported rather than independently verified.
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Completion in July 2026
On July 28, 2026, UPS said the glide-down and related network reconfiguration were complete. Tomé thanked employees for their work “over the past 18 months.” The phrase “as designed” refers to UPS’s own plan; it is not an external audit of the outcome.
What the second-quarter 2026 numbers show and do not show
UPS’s July 2026 release also reported results for the second quarter of 2026. These figures show the business context around the glide-down, but the release does not attribute the results to the Amazon reduction alone.
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| Metric (U.S. domestic, Q2 2026) | Reported value | Note |
|---|---|---|
| Revenue | $14.930 billion, up 6.0% year over year | Company-reported segment revenue |
| Revenue per piece | Up 9.3% year over year | Growth in revenue per piece is a pricing and mix measure, not a volume count |
| GAAP operating margin | 0.1% | Calculated under U.S. GAAP without adjustments |
| Non-GAAP adjusted operating margin | 8.0% | Excludes items UPS classifies as adjustments; not comparable to the GAAP figure |
The gap between the 0.1% GAAP margin and the 8.0% adjusted margin is large, and readers should not blend the two. The Amazon reduction is one of several factors in the quarter, and the release does not isolate its effect on revenue per piece or margin.
What the plan does not mean
- It does not mean Amazon volume went to zero. The reported reduction is measured in pieces per day against a larger base.
- It does not mean UPS dropped half of its shipping business. The cut applies to one customer’s volume.
- It does not prove every closure or job cut was caused by Amazon. The building closures and job-cut targets were reported as part of a broader network program.
- It does not reveal the contract’s financial terms. The agreement is confidential, and Amazon has not been quoted in the reporting about its terms.
What this means for shoppers, sellers and investors
For most people who order from Amazon, the reporting does not describe any change in delivery service, fees or carrier choice. Amazon’s own shipping decisions are outside what UPS disclosed.
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For investors, the key distinction is between reported volume and reported profit. The volume reduction is a company-stated plan that UPS says is complete; the margin figures are quarterly results that reflect many forces. Compare UPS’s GAAP and adjusted measures against the same basis in other filings, and check the company’s quarterly filings for segment details before drawing conclusions about the Amazon decision alone.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How much weight the evidence can bear
The figures in this article come from UPS announcements and from AP reporting on UPS’s January 2025 and January 2026 earnings-call remarks. No independent industry study or third-party measurement of Amazon’s shipment volume was located, so the volume numbers are company-reported, approximate and not independently audited. The 73-building and 20,000-job figures were plans reported in April 2025, not completed totals.
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The clearest established facts are these: UPS set a target of more than a 50% cut in Amazon volume, it reported removing about one million pieces per day through 2025, it described completing the glide-down in July 2026, and its own explanation for the decision was profitability.
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