Oops is ‘to take control’ by cutting Amazon -Volumen, says CFO

UPS (UPS) shares throw themselves after the company reported earnings and delivered a weak 2025 forecast as it cuts deliveries from its largest customer, which is believed to be Amazon (Amzn).

UPS CFO Brian Dykes joins to Catalysts With Seana Smith and Josh Schapher to discuss the shift and what it means for the company and its collaboration with Amazon.

“One of the things we announced was a strategic decision for us to start sliding some of the volume of our biggest customer over the next six quarters,” Dykes says, sketching that he is looking at this step with others Efficiency programs that the company “takes control of our own destiny.”

CFO says the decision allows the company to manage its assets and resources to “drive higher yields and returns.”

“The result of this is that we take down volume and we get revenue in 2025 and 2026, but it improves margin in every quarter,” he explains.

He continues, “We have had a 30-year relationship with Amazon … With the amount of volume we are talking about moving, it must be an orderly transition, otherwise it would affect both their customers as well as our remaining customers, and they will continue to be a customer with us in the long term.

“The part of the company that we change out just doesn’t make sense for us to do … From a competitive point of view, we are actually still helping Amazon with a lot of the things that make sense with our networks that are built For long zones, several pickup placements and moving things across the country towards theirs that are built for a much shorter fulfillment center to door network capacity.

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This post was written by Naomi Buchanan.