Metered mail giant Pitney Bowes will cut 10% of its staff in the next two years. The Stamford-based company could lay off more than 3,000 people. WNPR’s Harriet Jones reports.
Pitney Bowes employs around 2,500 workers in Connecticut, mostly in Stamford and Shelton. Its global workforce amounts to 35,000. The company says it's still in the early stages of formulating its planned cuts, and it doesn’t yet know whether all of its operations will be affected.
Executives said this week revenue has declined in 2009, as a direct result of the effects of the recession on its customers. They said they’re aiming to improve processes and enhance productivity, as they undertake the restructuring, and expect to realize savings from the cuts in 2012. Next year the company will record charges related to the layoffs of up to $350 million.
Cutbacks have already worked to improve the company’s bottom line – last month, Pitney Bowes reported a 5% increase in third quarter profits, despite falling revenue. The company has lowered its earnings guidance for the full year, but says it expects an improvement next year as the global economy stabilizes.
For WNPR, I'm Harriet Jones.