Pitney Bowes Implements Approx. $70 Mln In Long-term Savings; Increases Savings Targets

(RTTNews) - Pitney Bowes Inc. (PBI) announced an update on the first phase of the company's cost rationalization initiative. The company has identified and initiated approximately $70 million in cost savings, the majority of which has already been eliminated in the second quarter. Approximately $25 million of non-recurring charges associated with these efforts are expected to be recorded in the second quarter. The savings primarily come from general corporate cost reductions and include certain SendTech and Presort expense reductions.

The management of Pitney Bowes has identified additional opportunities for achieving new efficiencies in the coming months and has increased its anticipated savings from an initial target of $60 million to $100 million to between $120 million to $160 million.

The company is also continuing to focus on other strategic initiatives that include an accelerated Global Ecommerce strategic review, cash optimization and balance sheet deleveraging.