Thomas Black, Columnist

UPS’ Amazon Reduction Is the Right Move

Investors are displeased, but the strategy of moving away from lower-margin deliveries makes sense in the long run.

January 30, 2025 at 5:55 PM UTC

Thomas Black is a Bloomberg Opinion columnist writing about the industrial and transportation sectors. He was previously a Bloomberg News reporter covering logistics, manufacturing and private aviation.

UPS is focusing less on Amazon and more on higher-margin deliveries.
Photographer: Victor J. Blue/Bloomberg

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Carol Tomé, chief executive officer of United Parcel Service Inc., is ripping off a Band-Aid in one excruciating shot of pain to fix the courier’s post-pandemic problem with depressed profit margins.

The pain comes in the form of lower revenue, disclosed on Thursday when the company reported quarterly results, and investors aren’t pleased. The shares dropped as much as 20% in early trading, the most since 2008 back when the demise of Lehman Brothers tanked the global market. Shareholders should give Tomé the benefit of the doubt.