AG Schwalb secures $3.95m from Amazon to resolve lawsuit over stolen tips intended for delivery worker
PRESS RELEASE February 7, 2025 Settlement Forces Amazon to Pay Additional Penalties for Deceptive, Illegal Scheme After ...
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HD: DIY RE-PRICINGZIM: A RISING TIDE LIFTS ALL BOATSTSLA: CHINA THREATDAC: KEY REMARKSDAC: SURGING GM: SUPPLY CHAIN WOESMAERSK: ROTTERDAM TEMPORARY SUSPENSION OF OPERATIONSATSG: OWNERSHIP UPDATERXO: COYOTE FILLIP GONEGM: SUPPLY CHAIN HITBA: CUT THE FAT ON THE BONER: STEADY YIELDMAERSK: SELL-SIDE UPDATESDAC: TRADING UPDATE OUT SOONTSLA: FEEL THE PAIN IN CHINAWMT: GUESS WHATXPO: SURGINGAMZN: LOOKING FORWARD
UPS has announced that it will be reducing the volumes it handles for Amazon by 50% going into the second half of next year.
The news was announced today as part of a cost-cutting initiative by the express operator, which is eyeing a $1bn reduction in spending, with an emphasis on cuts to air, labour, and road costs, as well as closing a number of buildings.
During the company’s earnings call, chief executive Carol Tome said: “Amazon is our largest customer, but not our most profitable,” citing the “dilutive” impact it has on UPS’s margins.
Even so, the ecommerce behemoth made up just shy of 12% of the company’s 2024 revenue, with the news precipitating a 15% drop in value, adding further woe after a difficult three years in which UPS lost a third of its value, following indications of a post-pandemic bump.
Compounding this, Q4 24 revenue of $24.3bn was shy of the forecast $25.42bn, UPS expecting to hit $89bn for full-year 2025.
According to reports, in the absence of Amazon, it seems UPS is looking to take on the small parcel sector, which it had shunted over to US Postal Service, hoping to make gains from having signed up the likes of Shein and Temu.
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