Worker relocation and position elimination actions will impact 10% of total 13,000 head count
TransUnion stock rose Wednesday on plans to cuts costs in actions that will affect 10% or about 1,300 positions at the information and risk management solution company.
TransUnion’s TRU, -0.20% stock was up 2.8% as the overall U.S. equities market advanced on Wednesday. Prior to Wednesday’s moves, TransUnion’s stock was down 1.3% so far in 2023, compared to a 17.1% increase by the S&P 500 SPX.
The company will relocate employees to its global capability centers (GCCs) and eliminate other positions as it reduces expenses related to its 13,000-employee work force.
“We believe these investments will help optimize our global operating model and enhance our market-leading technology to reduce costs, accelerate innovation and drive growth,” Chief Executive Chris Cartwright, said in a statement.
The Chicago-based company said it expects to deliver $120 million to $140 million of annualized operating expense savings and a $70 to $80 million capital expenditure reduction in 2026, relative to 2023 levels. TransUnion expects to realize in 2024 half of the operating expense savings, which exclude depreciation and amortization.
TransUnion will take $355 million to $375 million of one-time pre-tax expenses, mostly by the end of 2024.
Those costs include about $155 million of employee separation and facility exit costs.
TransUnion will move more roles to its global capability centers where 4,000 of its employees currently work in India, South Africa and Costa Rica. TransUnion first started setting up the centers in 2018.