UPS Revenue Falls 2.46% to $88.66B, Cuts 48,000 Positions
UPS walked away from Amazon, causing a 10.8% drop in U.S. domestic volume and driving 2025 revenue down 2.46% to $88.66 billion, while cutting 48,000 positions and closing 93 facilities. The stock's one-year return stands at −12.17% despite a 6.4% dividend yield ($6.56 annual payout).
1. Strategic Shift from Amazon
UPS made a deliberate decision to end its contract with Amazon, triggering a 10.8% decline in U.S. domestic package volume in Q4 2025. Leadership characterizes this as the most significant strategic shift in company history, aimed at rebalancing customer mix and preserving margins.
2. Revenue Decline and Cost Reduction Measures
Full-year 2025 revenue fell 2.46% to $88.66 billion as a result of the volume drop. To mitigate the impact, UPS cut approximately 48,000 positions and closed 93 facilities, targeting reductions in fixed costs and network complexity.
3. Investment Returns and Dividend Profile
UPS’s one-year total return is −12.17%, with five-year and ten-year total returns of −25.14% and +43.64% respectively. The company offers a $6.56 annual dividend, translating to a 6.4% yield, which remains a core attractor for income-focused investors despite pressure on earnings.