United Parcel Service Inc. suffered its biggest one-day share drop after shocking the market by slashing business with the world’s largest online retailer.

United Parcel Service will halve its Amazon package volume to bolster its profitability, but the unexpected move sent the stock tumbling Thursday. Why it matters: UPS gets nearly 12% of its revenue from Amazon deliveries,

UPS shares tumbled on Thursday after the shipping giant said it would slash Amazon deliveries by more than half. CEO Carol Tome said the move would "put us further down the path to become a more profitable,

United Parcel Service on Thursday forecast downbeat 2025 revenue as it cuts back deliveries for its largest customer, Amazon.com , and grapples with stubbornly soft demand for lucrative overnight service and commercial shipments.

UPS is continuing to withdraw from its business relationship with Amazon. By the second half of 2026, UPS said it will cut its shipping volumes for Amazon by more than 50 percent under the companies' revised arrangement.