UPS cut its revenue forecast for 2023 due to weakened e-commerce delivery demand, causing the company’s shares to fall by 4.8% on October 26.

The organization expects its full-year revenue to be between $91.3 billion and $92.3 billion, according to Reuters. Previously, the company estimated it would generate $93 billion in revenue for 2023. UPS also cut its annual adjusted operating margin to between 10.8% and 11.3%, down from the previous forecast of 11.8%.

"Revenue missed across all three segments with supply-chain solutions missing by the most," said Helane Becker, an analyst for the investment banking and financial services firm TD Cowen, in a client note.

UPS blamed the lowered forecast on a downturn in the freight industry. The company also said it had to prioritize shipping high-margin products for the healthcare industry to protect profits.

"While unfavorable macroeconomic conditions impacted global demand in the quarter, our U.S. labor contract was fully ratified in early September, and volume that diverted during our labor negotiations is starting to return to our network," said UPS chief Carol Tomé in a statement.

UPS has recently been forced to cut jobs in order to offset weakened e-commerce demand, decreased exports and increased costs stemming from the company’s new labor union contract.