TransUnion, a leading information and risk management solution company, has unveiled its plan to decrease its workforce by 10%, which accounts for approximately 1,300 employees out of its current 13,000-strong workforce. This move is a part of their comprehensive cost-cutting strategy. Interestingly, TransUnion’s stock experienced a 3.5% increase during premarket trading in response to this announcement.
According to Chief Executive Chris Cartwright, these investments will optimize the company’s global operating model and bolster its market-leading technology to drive growth, spur innovation, and reduce costs. The Chicago-based firm expects to generate annualized operating expense savings of $120 million to $140 million and reduce capital expenditures by $70 million to $80 million by 2026, in comparison to 2023 levels.
TransUnion anticipates that by 2024, it will have already achieved half of the operating expense savings. It’s worth noting that these figures exclude depreciation and amortization. However, as part of this restructuring process, the company is also bracing itself for one-time pre-tax expenses between $355 million and $375 million. These costs primarily consist of employee separation expenses amounting to approximately $155 million, as well as facility exit costs.
TransUnion’s recent announcement signifies its commitment to streamlining operations without compromising its ability to deliver high-quality information and risk management solutions. With a focused approach towards building a more efficient and technologically advanced framework, the company endeavors to unlock new avenues for growth and sustain its position as a leader in the industry.