WASHINGTON (dpa-AFX) - Western Union Co. (WU) Thursday announced job cuts of about 10% as the part of its new Global Strategy designed to drive improved efficiency, profitability, and long-term revenue growth.
The initial implementation is focused on improving efficiency and is expected to deliver $100 million in annual savings beginning in 2021, with approximately $50 million anticipated to be delivered in 2020.
The company anticipates recording restructuring expenses of about $100 million in 2019 and $50 million in 2020 related to these changes, of which $7 million was recorded in the second quarter.
The expenses are comprised primarily of severance and employee related benefits, but also include costs for relocation of various operations, facility closures, consulting and other expenses.
President and CEO Hikmet Ersek said, 'We are extremely excited to begin implementing our new strategy. The changes we announced today are being made from a position of strength and this is the first step in a larger plan that will not only reduce our structural cost base but allow us to expand the WU Platform to new customers, clients and global brands.'
CFO Raj Agrawal said, 'The changes and actions we announced today will meaningfully reduce our cost structure, drive long-term profitability and create additional shareholder value. We expect these savings to contribute to operating profit and drive margin expansion for the business.'
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