UPS Gave Up Two Million Packages a Day on Purpose
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UPS gave up two million packages a day on purpose.
The wind-down of Amazon volume finished in June, 18 months after it started, and took roughly $4.5 billion of expense out with it.
On August 31, Carol Tomé rebuilt her management team. From September 1, eight executives report directly to her.
Seven seats are filled, all from inside UPS. Three moved into bigger jobs. Nando Cesarone, a preloader in 1990, now runs global operations. Matt Guffey takes U.S. Domestic. Wilfredo Ramos takes International, Healthcare and Supply Chain from Kate Gutmann. Four keep the seats they already held.
The eighth seat is new and has no name on it: Chief Global Commercial Strategy Officer.
Two of the four who kept their seats were Tomé’s own outside hires. Darrell Ford was DuPont’s Chief Human Resources Officer when she hired him in December 2020. Bala Subramanian was AT&T’s Chief Digital Officer when she hired him in July 2022. Before that, he ran Best Buy’s digital business through its turnaround. Neither came from logistics. Each was hired for expertise UPS lacked, not for knowledge of the network.
The commercial hire looks like the third in that pattern. Guffey ran strategy and marketing until August 31. Tomé redrew the job as global, added product and pricing, and opened a search rather than promote the next insider. The people who spent two decades serving one enormous account may not be the people who replace it.
Gutmann retired after nearly 37 years and stays on as an advisor through March 2027. Ramos has her advice. She has no authority.
At Eagle Talon, we map operating experience, capital allocation record, and reporting structure against the challenge a company faces next. UPS’s next challenge is growth, on $88.7 billion of 2025 revenue, and the executive who will own it still hasn’t been found.
If that seat goes to a UPS lifer, my read is wrong.
Which matters more in that hire: knowing the network, or knowing the customers UPS now has to win?
