United Parcel Service (UPS) shares dropped 14% after the company announced plans to reduce its deliveries for Amazon by more than half.

CEO Carol Tome stated that while Amazon is UPS’s largest customer, the partnership has not been highly profitable, prompting a strategic shift toward more lucrative markets.

Alongside this move, UPS is implementing efficiency initiatives expected to save $1 billion. Meanwhile, Amazon has been expanding its in-house logistics operations, further reducing reliance on external carriers like UPS.