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Maguire: From curiosity to cornerstone, how batteries became mainstream
Batteries were essential but not transformative for most of the last century. Batteries powered radios and started cars. They also provided backup power when the grid went down. They are now at the heart of a global shift in industry, underlying everything from electric cars and smartphones to power grids that are increasingly dependent on renewable energy. This transformation -- from niche component to strategic basis -- has occurred with an unusually rapid pace. Batteries have evolved from a mere afterthought to a key technology in the transition from fossil fuels. It is not a single innovation that has brought batteries to the forefront, but rather a convergence between technology, economics, policy and scale. Portable Constraints Batteries were used for a variety of specific and often "unglamorous" applications before the 1990s. Lead-acid batteries were the most common, and they were used in automobiles and industrial backup systems. There were rechargeable options, but they were expensive, bulky and short-lived in comparison to the amount of energy they could hold. Batteries were seen as a limitation rather than enabling technology in the late 20th Century, even as electronics became more prevalent. The devices were designed to work around the limitations of batteries: their short runtimes and heavy weight, as well as slow charging. It would have been unthinkable to think that batteries could transform entire industries, or even global energy systems. LITHIUM ION CHANGES THE EQUATION This changed in 1991, when lithium-ion battery technology was commercialized. This new chemistry provided a significant improvement in terms of energy density, flexibility and rechargeability. Instantly, portable electronics no longer had to be plugged into power outlets. In the decade that followed, lithium-ion battery technology quietly fueled the growth of laptops and mobile phones. Eventually, smartphones were also powered by these batteries. In the early 2000s batteries no longer supported devices, but enabled new product categories. Batteries became a part of everyday life, even though they were still mostly invisible. The next turning point was scale. Battery manufacturing grew dramatically in East Asia as global consumer electronics demand surged during the 2000s and 2010s. Scale brought learning. Manufacturing processes improved. Yields increased. Supply chains matured. Costs started to drop -- first slowly, then quickly. According to the International Energy Agency, the lithium-ion batteries' prices have dropped between 80% and 90% over the past decade. This is one of the steepest price declines for any major industrial technology. The cost curve would be decisive. Batteries that were cheaper did not only expand the existing market, but also created new markets. EVS BATTERIES MAKE BATTERIES STRATEGIC Transport is the best sector to illustrate this shift. The battery in electric vehicles has become the most important feature of the vehicle, replacing the internal combustion engines as the core of the vehicle. This shift has forced automakers, at least those who want to compete in the electric vehicle space, to rethink their supply chains and manufacturing processes. Tesla and other companies based their business models on battery performance and costs, while the government introduced incentives and emission?rules to accelerate adoption. At the same, the demand for raw materials like lithium, nickel, and cobalt soared, bringing batteries into the geopolitical realm. Supply chains were transformed into strategic assets and the control of battery materials had implications for industrial competitiveness and energy security. Batteries are no longer just a consumer technology. They're a cornerstone for the future of transport. From Mobility to the Grid Power has become the next frontier. The variability of renewable energies, such as wind and solar, has led to a need for greater flexibility. Batteries are one of the best tools for achieving flexibility. Battery storage projects at utility scale are being implemented to balance the supply and demand, improve grid stability and store surplus renewable energy for later use. What started as a niche frequency regulation solution has evolved into a wide range of applications in modern power systems. According to the IEA, in many markets, battery-powered peaking plants are now competitive with gas-fired systems for certain applications. This was unthinkable a decade earlier. Batteries have been elevated from mobility technologies to core infrastructure. Power Politics The government's policy played a key role in speeding up this transition. Climate targets have moved electrification up the national agendas while industrial policies have tried to localize battery production. In the U.S. the Inflation Reduction Act offered incentives to domestic production and supply-chain development. The European Union introduced its own battery regulations, and has invested in frameworks for investment. China has been dominating the value chain of batteries over many years. It is not just a race to deploy batteries but also to manufacture them and secure the raw materials required to do so. Batteries are a unique technology at the intersection of geopolitical competition, industrial strategy and climate policy. GROWING PAINS The transition to mainstream culture has not been smooth. The raw material supply is a constant concern. Lithium and other inputs are subject to price volatility, and geographical concentration. The environmental and social impacts of mining are also gaining attention, which raises questions about the sustainability of battery supply chains. Despite this, there are still technical challenges. The pace of improvement in energy density is slowing down, while safety risks, though manageable, persist. Recycling systems must also be scaled up to meet future demand. The next phase of 'battery history' is shaped by these constraints, rather than being stopped. The industry is diversifying as it matures. In cost-sensitive applications such as mobile phones, lithium iron phosphate batteries (LFP) are increasing their market share. Alternatives like sodium-ion batteries are also beginning to appear for certain uses. Solid-state batteries continue to be researched, with potential improvements in safety and performance. Commercial timelines are still uncertain. New use cases continue to expand the market. Batteries are being used in more and more homes, businesses, and industries, creating a flexible and distributed energy system. Recycling will also become a key component in the industry to both reduce the environmental impact as well as to ensure supply chains on a long-term basis. From Innovation to Infrastructure However, the most important shift may be conceptual. Batteries are not regarded as a new technology. Batteries are now viewed as an essential part of infrastructure, embedded and indispensable. The grids and devices that people use are based on them. They are important not only for what they can achieve individually, but also in the way they allow broader systems to work. In this sense, the rise in batteries is similar to that of other foundational technologies. From railways to electricity networks to the Internet. The innovation phase has not ended, but the centre of gravity is now in a new place. Now, the key questions are about scale, integration and control - who makes batteries, where are they deployed and how do they influence the global energy systems. What was once a niche tech has now become an integral part of modern living. Batteries will play a more important role as the energy shift accelerates. They won't be on the fringes anymore, they will be at the core. The opinions expressed are those of the columnist, author. This column is a great read! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Investors are focusing on Middle East and SK Hynix listings as they look at the S&P 500 and Nasdaq Futures.
S&P 500 futures and Nasdaq Futures slowed on Friday as investors weighed Middle East tensions, and awaited SK Hynix's highly anticipated Nasdaq debut. Chipmakers' gains fueled the main U.S. indices to close higher during the previous session. The S&P 500, Nasdaq, and Dow were all on track to gain weekly gains as of Thursday's closing. The AI trade was also back on the agenda ahead of SK Hynix listing in the U.S. on Friday. Memory-chip maker, Micron, priced its American depositary Receipts (ADRs) at $149 per share on Thursday. The company raised about $26.5 billion. This offering will be the second largest share sale in history, behind SpaceX's record breaking IPO last month. Dan Coatsworth is the head of markets for AJ Bell. He said that "SK Hynix’s U.S. listings has?arguably been a few month too late, as shares in memory-chip suppliers have pulled back following a purple patch in earlier this year." The demand for U.S. shares has been higher than expected by some. This implies that the memory chip rally may have taken a breather rather than reached its peak. The AI rally this year has been fueled by expectations that data centers and AI infrastructure will be heavily invested in. Recent volatility in the sector has been attributed to concerns about stretched valuations and profit-taking. Semiconductor shares eased during premarket trading. Memory-chip makers led the declines. Micron Technology declined 3.2%, after rising 4.5% the previous session. Western Digital and Seagate Technology also fell 2.8% and 2.7% respectively. At 05.08 a.m. At 05:08 a.m. ET, Dow E Minis gained 61 points or 0.12%. S&P 500 E Minis dropped 12.25 points or 0.16%. Nasdaq E Minis lost 167.5 or 0.56%. Investors were also on edge due to the geopolitical risks after Iranian forces attacked U.S. military facilities in Gulf states, on Thursday. This was following U.S. attacks on Iran's eastern and southern provinces. The recent escalation has rekindled concerns about inflationary effects of the war. New York?Federal Reserve president John Williams said that he didn't expect Middle East hostilities would cause energy prices to rise for the remainder of the year. He declined to reveal how he will vote at the Fed policy meeting later this month. Kevin Warsh, the U.S. Federal Reserve chair, is due to appear before the House Financial Services Committee in the next few days. According to LSEG, the markets are pricing in a minimum of a 25-basis point rate increase by 2026. According to data compiled and analyzed by LSEG, analysts expect earnings for the S&P 500 to increase 24% compared to a year ago, with technology companies leading this growth. Before the bell, traders will also be watching Delta Air Lines' second-quarter earnings. (Reporting by Ragini Mathur in Bengaluru; Editing by Pooja Desai)
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Thai court considers damages claimed by crew of ship which was attacked in Strait of Hormuz
The lawyer for the three Thai sailors said that the Labour Court of Thailand accepted their petition on Friday, seeking damages following a deadly attack on their cargo ship in the Strait of Hormuz during the U.S. and Israeli war against Iran in March. The petition seen by seeks at least one million baht ($30,000), per sailor, from companies and agencies connected to Precious shipping, the vessel's owner, and its captain. Kunpat 'Singhathong, their lawyer, told reporters that the sailors had accused their employers taking them to dangerous areas and putting their life at risk. They also claimed their employers were preventing them from continuing their work by forcing them to go into these danger zones. He did not release the medical reports, but said that all three had been diagnosed with Post-Traumatic Stress Disorder and were unlikely to return as sailors. Kunpat has said that the sailors have received compensation for their lost items and two months of wages. Precious Shipping did not respond to email sent by. Two projectiles hit the Thai flagged Mayuree Naree as it was sailing through the Strait of Hormuz on 11 March. Three crew members were killed and 20 rescued. Iran's Revolutionary Guards warned of a possible attack on any vessel passing through the Strait of Hormuz after Israel and the United States attacked Iran in February. Before the passage of Mayuree Naree, several vessels were hit. Precious Shipping, in a statement made to the Stock Exchange of Thailand on March 11, said that its vessel had taken enhanced security measures and was in constant communication with maritime security coordination centers. Kunpat claims that the company told him they had paid all the compensation to which the sailors were entitled and wouldn't take on any additional responsibility. "They paid, and they told us to?don't request more, what we have given is already enough," said Noppadon, a 33-year-old former crewman, who called the compensation insufficient and not up international standards. Panithi Tumkaew (43), a former crew member who worked for the company 'for 11 years, said that he needed'medical assistance because he was frightened of loud noises. He is now unable to do his job. "I'm taking sedatives these days" Panithi said, "I take them to sleep."
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The Russian fuel queues are too long for electric cars.
Oksana Yasinskaya’s electric hatchback in sky-blue zipped by a 'long line of cars awaiting the reopening of a filling station and pulled into a charging bay that was empty. Yasinskaya, after plugging in her car, 'looked across the deserted frontage. The signs on the fuel pumps apologized for being temporarily out of gas. This is a common sight in Russia as a result of Ukrainian attacks on energy targets. Gasoline and diesel prices have increased due to the shortages, causing long lines and hours of waiting. Some drivers, like Yasinskaya's husband, are now switching to electric cars. The fuel queues at the stations settled the issue. "We had never before considered buying an EV," explained Yasinskaya a 36-year old engineer who commutes to Moscow for her job. "I'm relieved that I don't need to stand in this embarrassing queue. I hate to waste time. I know people who wait in line for two to three hours or drive at night to fill up with fuel. According to Autostat, the market for new EVs and plug-ins hybrids grew in June, as fuel shortages became more prevalent. The agency predicts that the small but growing market will continue to grow if the fuel crisis continues. Yasinskaya claimed she purchased her car from a retired man who kept it mainly in his garage and stored pickle jars up on the roof. She said that she would not regret the decision, as her commute costs have dropped by 80%. The lack of charging infrastructure in Russia and the severe weather are still major challenges for EV drivers. However, Yasinskaya says that her family can now afford to switch from their current car to a hybrid because they can charge it at home. She said as she drove past another queue of motorists. "Those unfortunate, unhappy, unlucky individuals are just waiting there." (Written by Alessandra Prrentice, Edited by Ros Russell).
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Officials say 11 people have been killed by a fast-moving wildfire in southern Spain
Antonio 'Sanz, the Andalusia head of emergency, said that 11?people died in a wildfire which broke out in Almeria, in southern Spain. Sanz stated that the fire spread rapidly around Los Gallardos, in the province of Almeria in Spain's southern Andalusia region. It affected the nearby hamlet Bedar. He said that authorities had warned residents to remain in their homes, and the deaths seemed to have happened when people tried to evacuate their cars. Sanz reported that four people who appeared to be British, as the steering wheel was on the 'right-hand side of their car,' died in one vehicle. Seven others were also found dead, after they had abandoned their cars to try to flee on foot, along a route not included in the evacuation plan. Sanz reported that four more people are being treated for severe burns in hospitals. Sanz urged residents to heed official instructions and avoid risky situations, as authorities are focused on saving lives. The authorities are continuing their search operations as they fear that there could be more missing people. This is the deadliest wildfire in Spain since 2005 when 11 firefighters died in a fire in central province Guadalajara, which was started by a barbecue. The fire burned thousands of acres of forest. This disaster, which is considered to be one of Spain's worst wildfire tragedies led to major changes in the wildfire prevention systems and emergency response system. The Prime Minister Pedro Sanchez expressed "enormous sadness" and "devastation" at the effects of the fire. He offered his condolences and best wishes to the families of the victims and the injured. In a message on?X he stated that?emergency service, security forces, and the military emergency unit(UME) were mobilised to fight the fire and advised residents to exercise caution. This latest fire?comes a week after a wildfire that burned out of control near the Spanish border in southern France forced over 10,000 people to evacuate from two dozen small villages and towns. The early summer heatwaves in western?Europe, which occurred between May and June, have drained vast?areas. This has made them vulnerable to wildfires. The World Meteorological Organization says that Europe is heating up at a rate more than double the global average. This makes prolonged heat waves more likely. (Reporting by Akanksha Khushi in Bengaluru. Emma Pinedo, in Madrid, contributed additional reporting; editing by Lincoln Feast and AislinnLaing.
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Russia uses small drones to evade Ukraine's electrical substation defenses
Open-source analysis shows that Russia is using small drones to damage high-voltage substations of electricity in the frontline region of Sumy in northern Ukraine. The Centre for Information Resilience in London is an open-source investigative group that has verified the footage of a new wave of strikes posted on Russian social media. Throughout the war, Russia bombarded Ukrainian power plants, particularly in frontline regions. As a response, Ukrainian authorities covered high-voltage converters with concrete sarcophagis and anti-drone webs. Ukraine's frontline areas are also filled with electronic warfare systems, which aim to interfere with the radio signals that control drones. As long as the thin, translucent fibre optic cable of small, agile First Person View (FPV), drones is not cut, or snagged, they are immune from?signal interfering. RUSSIA SEEMS TO WANT UKRAINIAN REGIONS BLACKED OUT Joshua Scriven, an investigator at CIR said that the Russians created holes in the protective net by first breaking it, before sending a drone through the gap. Since May, Russia uses these drones to navigate the vast structures of a sarcophagus. They find their way through ventilation openings to a central piece of equipment called the autotransformer. Oleksandr Kharchenko, the head of the Energy Research Centre, Kyiv, explained that removing the autotransformer (which in a substation with 330 kilovolts is worth around $3.5 million) will bring down the entire transformer. CIR has confirmed four of these strikes on large, well-defended substations 330 kV, and at least another four on smaller substations 110 kV. According to Deepstate, an independent producer of a battlefield map online, the locations of the strikes at 330 kV Substations range between 16 and 26 km (10-16 mi) from the frontline. This shows the increasing range of small fiber-optic drones. They've been using these protective sarcophagi for a while now. Scriven stated that they protect against "missiles" and "Shaheds" (heavy duty drones). The cost of a fibre-optic FPV RC drone is as low as $2,000. The cost-benefit analysis is staggering. Scriven stated that the strikes appeared to be a part of a Russian strategy to isolate Ukrainian areas from the national grid, and then to black out those regions by attacking the local power stations. Sumy has suffered from Russian bombardment ever since the summer of 2024 when Ukraine launched a military offensive from its province into?Russian territories. After being pushed back last year, Russia launched an attack on Sumy. Mykhailo Fedorov, Ukrainian Minister of Defence, said on Wednesday that the?security situation in the region had worsened since June. He wrote: "Russian's goal is to terrorise the people and make their lives in the border regions unbearable." The International Criminal Court issued arrest warrants for senior Russian military officers who were involved in attacks on Ukraine's electricity grid between 2022-2023. Russia denies that it is targeting civilians, and claims all of its strikes are military in nature. (Reporting and editing by Kevin Liffey, Felix Hoske, Magdalini Gkogkou and Max Hunder; Additional reporting by Felix Hoske)
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Apollo wins easyJet bid of $7.65 billion over Castlelake
EasyJet, the British budget airline, said that it had agreed to a takeover offer of PS5.7 billion ($7.65billion) from Apollo Global. This was a higher bid than a rival suitor Castlelake. Apollo's offer of around PS7.15 per easyJet shares is approximately 3.6% higher than Castlelake’s latest bid. This could be the beginning of a battle to takeover?the London listed carrier. EasyJet's board announced that it would no longer recommend Castlelake’s proposal of PS6.90 a share, which the two parties had agreed on in principle just days earlier. EasyJet and Apollo stated in a joint press release that the cash offer was superior for easyJet's shareholders, as it provided a "higher cash value" than Castlelake’s latest proposal. Apollo must make a "firm" offer to easyJet before August 7, or they will walk away. Castlelake has until August 3 "Apollo believes in easyJet’s existing strategy to evolve and strengthen the?low cost carrier model," said?Apollo. ($1 = PS0.7447) (Reporting by ?Yamini Kalia and Yadarisa Shabong in Bengaluru Editing by Rashmi Aich, Subhranshu Sahu and David Goodman)
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Maguire: From curiosity to cornerstone, how batteries became mainstream
Batteries were essential but not transformative for most of the last century. Batteries powered radios and started cars. They also provided backup power when the grid went down. They are today?at a center of an industrial revolution, underlying everything from electric cars and smartphones to power grids that are increasingly dependent on renewable energy. This transformation from a niche component to a strategic foundation has unfolded at an unusually fast pace. Batteries have evolved from a niche component to a strategic foundation in less than 30 years. It is not a single breakthrough that brought 'batteries to the mainstream, but rather a convergence in technology, economics, policy, and scale. Portable Constraints Batteries were used for a variety of applications, many of which were not glamorous. Lead-acid battery technology dominated the market, used in cars and industrial backup systems. There were rechargeable options, but they were expensive, bulky and short-lived in comparison to the amount of energy they could hold. Batteries were seen as a limitation rather than enabling technology in the late 20th Century, even as electronics became more prevalent. The devices were designed to work around the limitations of batteries: limited runtimes and heavy weight. It would have been unthinkable to think that batteries could transform entire industries, or even global energy systems. LITHIUM ION CHANGES THE EQUATION This changed in 1991, when lithium-ion battery technology was commercialized. This new chemistry provided a significant improvement in terms of energy density, flexibility and rechargeability. Instantly, portable electronics no longer had to be plugged into power outlets. In the decade that followed, lithium-ion battery technology quietly fueled the growth of laptops and mobile phones. Eventually, smartphones were also powered by these batteries. In the early 2000s batteries no longer supported devices, but enabled new product categories. Batteries became a part of everyday life, even though they were largely invisible. The next turning-point came from scale. The global consumer electronics market boomed between 2000 and 2010. Battery manufacturing grew dramatically in East Asia. Scale brought learning. Manufacturing processes improved. Yields increased. Supply chains matured. Costs started to drop -- first slowly, then quickly. According to the International Energy Agency, the price of lithium-ion batteries has dropped between 80% and 90% in the last decade. This is one of the steepest declines in cost of any major technology. The cost curve would be decisive. Batteries that were cheaper did not only expand the existing market, but also created new markets. EVS BATTERIES MAKE BATTERIES STRATEGIC Transport is the best sector to illustrate this shift. The battery in electric vehicles has become the "defining feature" of the vehicle, replacing the internal combustion engines as the core of the car. This shift has forced automakers, at least those who want to compete in EVs, to rethink their supply chains and manufacturing processes. Tesla, for example, built its business model around the performance and cost of batteries. Governments introduced incentives and emission rules to accelerate adoption. At the same time, raw materials like lithium, nickel, and cobalt were in high demand, bringing batteries into geopolitics. Supply chains were transformed into strategic assets and the control of battery materials had implications for industrial competitiveness and energy security. Batteries are no longer just a consumer technology -- they're a cornerstone for the future of transport. MOBILITY AND THE GRID Power has become the next frontier. The variability of renewable energies, such as wind and solar, has led to a need for greater flexibility. Batteries are one of the best tools for achieving flexibility. Battery storage projects at utility scale are being implemented to balance the supply and demand, improve grid stability, and store excess renewable energy for later use. What started as a niche frequency regulation solution has evolved into a wide range of applications in modern power systems. According to the IEA, in many markets, battery-powered peaking plants are now competitive with gas-fired systems for certain applications. This was unimaginable a few years ago. Batteries have been elevated from mobility technologies to core infrastructure. Power Politics The government's policy played a key role in speeding up this transition. Climate targets have moved electrification up the national agenda, and industrial policies have tried to localize battery production. In the U.S. the Inflation Reduction Act offered incentives to domestic production and supply-chain development. The European Union introduced battery regulations and investment structures, while China spent years dominating the?battery chain. It is not just a race to deploy batteries but also to manufacture them and secure the raw materials required to do so. Batteries are a unique technology at the intersection of geopolitical competition, industrial strategy and climate policy. GROWING PAINS The transition to mainstream culture has not been smooth. The raw material supply is a constant concern. Lithium and other inputs are subject to price volatility, and geographical concentration. The environmental and social impacts of mining have also been a subject of increasing attention, raising concerns about the sustainability of battery supply chains. Despite this, there are still technical challenges. The pace of improvement in energy density is slowing down, while safety risks, though manageable, persist. Recycling systems must also be scaled up to meet the future demand. The 'constraints' are shaping, not halting the battery story. The industry is diversifying as it matures. In cost-sensitive applications such as mobile phones, lithium iron phosphate batteries (LFP) are increasing their market share. Alternatives like sodium-ion batteries are also beginning to appear for certain uses. Solid-state batteries continue to be researched, with potential improvements in safety and performance. Commercial timelines are still uncertain. New use cases continue to expand the market. Batteries are being used in more and more homes, businesses and industrial settings to create a flexible and distributed energy system. Recycling will also become a key component in the industry to both reduce the environmental impact as well as to ensure supply chains on a long-term basis. From Innovation to Infrastructure However, the most significant?shift may be conceptual. Batteries are not viewed as a new technology. Batteries are now viewed as an essential part of infrastructure, embedded and regarded as a given. The grids and devices that people use are based on them. They are important not only for what they can achieve individually, but also in the way they allow broader systems to work. The rise of batteries is similar to that of other foundational technologies, from railways and electricity networks to the Internet. The center of gravity is now in a new place. Now, the key questions revolve around?scale integration and control - who manufactures batteries, where are they deployed, and what impact they have on the global energy systems. What was once a niche tech has now become an integral part of modern living. Batteries will play a more important role as the energy shift accelerates. They won't be on the fringes anymore, they'll be at the center. The opinions expressed are those of the columnist, author. This column is a great read! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
Shares rise as Amazon's volume reduction accelerates; UPS will eliminate 30,000 additional jobs
United Parcel Service, the largest package delivery company in the world, announced on Tuesday that it will close 24 additional facilities and eliminate up to 30,000 positions by 2026. This is due to its ongoing shift towards a'more profitable business.
In midday trading, shares of the company rose 4%. The company also announced fourth quarter results that exceeded Wall Street expectations and forecasted a surprise increase in annual revenue. FedEx shares gained 2.6%.
Carol Tome, CEO of the company, said in a conference with analysts that the company plans to reduce Amazon deliveries. "We are now in the last six months of the Amazon accelerated glide-down plan. For the entire year 2026, our intention is to glide down an additional million pieces each day, while reconfiguring our network."
UPS in January
Last year
It said that it would speed up a plan to cut millions of low-profit delivery for the online retailer. The company, which is its biggest customer, and a growing rival in the delivery business, called the business "extraordinarily dilution" to the margins. UPS and FedEx are struggling to meet the demand for delivery services.
UPS will eliminate 48,000 jobs in 2025. They'll also launch a?driver-buyout program and close 93 buildings, as Amazon's volume declines. The job cuts this year will be made through attrition, and a second buyout offer to full-time drivers. Chief Financial Officer Brian Dykes stated that layoffs were not planned.
UPS's 2024 annual report stated that it had approximately 490,000 workers, with 78,000 of them in management. The 2025 employment figures were not immediately available.
UPS's workforce is unionized. The CFO stated that many of the reductions will be due to not filling positions when part-time employees leave the company.
Separately the company is working on stabilizing volumes after the end of U.S. Duty-Free, "de minimis", low-value e-commerce from major China-linked retailers like Shein or Temu.
The company forecast revenue in 2026 of $89.7 Billion, up from $88.7 Billion in 2025. According to data compiled and analyzed by LSEG, analysts on average expected revenues of nearly $88 billion.
UPS's revenue is expected to drop in the first half as it finishes the Amazon "glide down," and then increase sequentially in second half once the reductions have been completed.
HOLIDAY QUARTER QUARTER BEAT
In the peak holiday shipping period, which runs from late November to early January, parcel carriers' average daily volumes can easily double. Companies often add seasonal surcharges. UPS reported consolidated fourth-quarter revenue of $24.5billion,?overestimates of $24billion. UPS's adjusted profit for the quarter ending December 31 was $2.38, above estimates of just $2.20.
Evercore ISI analyst Jonathan Chappell stated that "UPS?generated another quarter beat, primarily by (revenue per item) upswing in domestic and international markets, continuing the better than expected pricing theme of the past few quarters."
CFO 'Dykes' said that, excluding Amazon, peak-season?volumes were mixed. Small and medium businesses performed better than expected, while large retailers did not perform as well.
He said, "We were down from last year a little."
The company's U.S. segment revenue per piece rose 8.3%, despite a lower volume. International revenue per piece increased 7.1% as a result of its shift to higher-margin shipments.
UPS said that it would retire its remaining MD-11 cargo jet fleet, which consists of over two dozen aircraft, by the end 2025. This is an acceleration of a plan already in place. This was after a deadly crash.
One MD-11 is scheduled to be delivered in November. Boeing 767 replacements are scheduled to be delivered.
UPS recorded an after-tax non-cash charge of $137 millions related to the MD-11 fleet.
(source: Reuters)