United Parcel Service is adopting a new operating model and leadership structure to use its global network more effectively and accelerate profit growth as it shifts from a traditional small package carrier toward an integrated logistics provider. The changes follow the phase-out of much of its low-margin Amazon business and the downsizing of its domestic parcel network, largely completed by the end of June. UPS plans to standardize processes across geographies while retaining flexibility for local markets, offering customers greater consistency, agility and scale. The company has been deemphasizing last-mile e-commerce delivery as parcel volumes stagnated after the Covid-era e-commerce boom and low-cost competitors expanded. It is instead targeting premium segments including healthcare, industrial and automotive logistics, along with services for small and medium-sized businesses. Nando Cesarone was appointed executive vice president and chief global operations officer, while Matt Guffey became chief U.S. domestic officer. UPS is also searching for a chief global commercial strategy officer. Kate Gutmann, president of international, healthcare and supply chain solutions, will retire for personal family reasons after 37 years at UPS. Healthcare logistics has grown into a nearly $12 billion business during her tenure. UPS eliminated 50% of its Amazon volume, or about 2 million pieces per day, over 18 months. Its shares closed Monday at $104.23, were essentially flat for the year and remained below $127 two years ago and $169 on Aug. 31, 2023.