“As you pointed out, Tom, there are a lot of assets and resources that support that Amazon volume, but as we glide down the volume, we will also be gliding out those assets and resources which gives us the margin expansion that we've explained.”

In context

“h? Thank you. Carol B. Tomé: Tom happy to do that, but maybe I'll just start by talking about the Amazon announcement. We've been a partner to Amazon for nearly 30 years, and we hold that company in high regard. Amazon is our largest customer, but it's not our most profitable customer. Its margin is very dilutive to the U.S. domestic business. Our contract with Amazon came up this year, and so we said it's time to step back for a moment and reassess our relationship, because if we take no action, it will likely result in diminishing returns. So we considered a number of different options and landed on what we think is the best option for our company, and that is to accelerate the glide down of their volume with us, as we commented in our prepared remarks, by more than 50% by June of 2026. As you pointed out, Tom, there are a lot of assets and resources that support that Amazon volume, but as we glide down the volume, we will also be gliding out those assets and resources which gives us the margin expansion that we've explained. Now I'll turn it over to Brian so he can explain how the cost will come out. Brian Dykes: Sure. Thank you. And Tom as we said before, clearly there's a lot of stakeholders that are involved here, and we needed to make this announcement so we can engage with those stakeholders. But you're absolutely right in your intuition that this is going to require a reconfiguration of the network so that we bring the fixed asset base, the buildings, the vehicles, the aircraft, in line with the new volume levels, and we'll give you a lot more color on how we're going to roll that schedule out on the first quarter earnings call, once we have a chance to engage all the stakeholders involved. But I do think that is the key here, that is the mission, and quite frankly, it's already underway with our team.”