Pitney Bowes Provides Update on Accelerated Progress of Cost Rationalization Program and Increases Savings Targets
Management has Expeditiously Implemented
The Cost Rationalization Program’s Increased Savings Target is
The Company has identified and initiated approximately
The savings primarily come from general corporate cost reductions and include certain SendTech and Presort expense reductions. These savings do not include prospective savings from changes in the Global Ecommerce segment, where the Company is in the final stages of an expedited strategic review of alternatives to eliminate ongoing operating losses.
Further, management has identified additional opportunities for achieving new efficiencies in the coming months and has increased its anticipated savings from an initial target of
Lance Rosenzweig, Interim Chief Executive Officer and a member of the Board of Directors, commented:
“Since announcing our strategic initiatives in late May, new leadership has been operating with intensity and urgency to accelerate the turnaround of Pitney Bowes. Our ability to implement approximately
Mr. Rosenzweig added:
“We acknowledge that certain necessary decisions impacted our workforce and valued employees. I want to express my sincere and heartfelt appreciation to these individuals who have been impacted. Some of the non-recurring charges have been dedicated to severance, outplacement and other resources intended to guide a smooth transition for those that have been so instrumental in shaping our Company.”
As previously disclosed, Pitney Bowes is also continuing to focus on other strategic initiatives that include an accelerated Global Ecommerce strategic review, cash optimization and balance sheet deleveraging. A full overview of these initiatives can be found in the Company’s May 22, 2024 announcement.
About Pitney Bowes
Pitney Bowes is a global shipping and mailing company that provides technology, logistics and financial services to more than 90 percent of the Fortune 500. Small business, retail, enterprise and government clients around the world rely on Pitney Bowes to remove the complexity of sending mail and parcels. For the latest announcements and financial results, visit https://www.pitneybowes.com/us/newsroom.html. For additional information, visit Pitney Bowes at www.pitneybowes.com.
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Source: Pitney Bowes Inc.