“this year we expect to take the SMB percent of our U.S. volume to 32%, and the momentum will continue for the longer term.”

In context

“hange will be lower overall volume levels but an improved customer mix at a significantly higher revenue per piece. We are deliberately shifting our business and increasing our focus on growing higher yielding volume and value share. Lower overall volume levels from this customer will lead to lower revenue dollars in the near term. However, we expect to grow revenue per piece through shifting our customer mix and by leveraging our architecture of tomorrow pricing technology. This will enable us to continue the strong base rate improvements in 2025 that we delivered from our enterprise and SMB customers in the second half of 2024. Additionally, we will double down on growing volume and revenue in the best parts of the market for us, including SMB, healthcare, and B2B. And in terms of SMBs, this year we expect to take the SMB percent of our U.S. volume to 32%, and the momentum will continue for the longer term. Now looking at cost, as we bring volume down, we will not only reduce the hours and miles associated with this volume, we will be able to take out fixed costs to match our capacity to our new expected volume levels. All facts to the network are included in the reconfiguration. And we expect to close up to 10% of our building, cut back our vehicle and aircraft leads, and reduce labor. The right sizing of our U.S. capacity allows us to accelerate our network of the future initiative. We will be able to more quickly bring down less efficient capacity while further investing in automation across the network, getting us to a more efficient U.S. network faster. The capital requirements to run our reconfigured network will also decrease. We will share more details on our execution plan on our fi”