United Parcel Service adopts new operating model to transition from small package carrier to integrated logistics provider
United Parcel Service announced a new operating model and leadership structure designed to accelerate profit growth by evolving from a traditional small package carrier into an integrated logistics provider. The company aims to standardize processes across geographies while maintaining flexibility for local markets to provide customers with greater consistency and scale.
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This shift follows the completion of a major phase-out of low-margin Amazon business and a downsizing of the domestic parcel network, which were largely finished by the end of June. Over an 18-month period, United Parcel Service eliminated 50% of its Amazon volume, totaling approximately 2 million pieces per day. This reduction included closing 150 parcel sort centers and laying off 30,000 workers. The company appointed Nando Cesarone as executive vice president and chief global operations officer, overseeing the global air network, surface transportation, and sustainability functions. Matt Guffey was named chief U.S. domestic officer, overseeing U.S. businesses including small package delivery and the partnership with the U.S. Postal Service. Wilfredo Ramos will succeed Kate Gutmann as president of international, healthcare, and supply chain solutions.