UPS Cuts Amazon Volume in Half, Closes 150 Sort Facilities as It Pivots From Parcel to Global Logistics

UPS announced an executive reshuffle and a new global operating model on Aug. 31, effective Sept. 1, that formalizes a strategy the company has been executing for more than a year: shrinking its dependence on Amazon and domestic parcel volume while building out international, healthcare and supply-chain logistics.

Under the new structure, laid out in UPS's own newsroom release, Nando Cesarone becomes Chief Global Operations Officer and Matt Guffey becomes Chief U.S. Domestic Officer — a new title that separates domestic parcel operations from the rest of the network for the first time. Wilfredo Ramos, with more than 20 years at the company, takes over as Chief International, Healthcare and Supply Chain Solutions Officer from Kate Gutmann, who is retiring after nearly 37 years and will stay on as an adviser through March 2027. CEO Carol Tomé credited Gutmann's "leadership, wisdom, and partnership" in the release.

The reorganization follows through on a volume strategy UPS has been public about since early 2025: cutting Amazon delivery volume by roughly 50%, or about 2 million pieces a day, and redirecting network investment toward higher-margin healthcare logistics — a business UPS has said is approaching $12 billion in annual size — and international freight forwarding. The company has closed roughly 150 sort facilities and reduced its workforce by about 30,000 positions over the same period as it right-sizes the ground network around the smaller Amazon book. UPS reported 2025 revenue of $88.7 billion and employs approximately 460,000 people across more than 200 countries and territories, per the company's release.

UPS shares closed at $104.23 on Aug. 31, down from roughly $169 two years earlier — a decline that has tracked the Amazon volume drawdown and the domestic parcel market's continued softness.

What this means for shippers and brokers

Three things worth tracking as this structure takes effect:

Ground network capacity is still being resized, not just relabeled. The creation of a standalone Chief U.S. Domestic Officer role, paired with the 150 facility closures already completed, signals UPS intends to keep shrinking its domestic sort footprint to match lower parcel volume rather than holding capacity for a rebound. Shippers relying on UPS ground for peak-season surge capacity should confirm committed volume allocations now rather than assuming legacy facility access.

The Amazon volume UPS is shedding has to land somewhere. A roughly 2-million-piece-a-day reduction in Amazon parcels moving through UPS's network is volume the market — FedEx, regional carriers, Amazon's own delivery service partners — has largely already absorbed over the past 18 months, but the final leg of that drawdown adds incremental ground and last-mile capacity into a market that was already soft, which argues against expecting a parcel rate floor this fall.

International and healthcare logistics is where UPS wants new business. With Ramos now running a nearly $12 billion healthcare unit alongside international and supply-chain solutions, forwarders and 3PLs competing for pharma, medical-device and cross-border contract logistics work should expect UPS to compete more aggressively on those bids — the reorg puts a single, elevated executive directly accountable for growing that book.