Western Union Co. is set to implement a number of changes in its operations, which includes a reduction of about 10% in its headcount and a consolidation of corporate and business offices.
The company said the cost-cutting initiative will result in annual savings of approximately $100 million starting 2021, with about $50 million anticipated to be delivered in 2020. Western Union expects recording restructuring expenses of approximately $100 million in 2019 and $50 million in 2020 related to these changes, of which $7 million was recorded in the second quarter.
Western Union updated its full-year 2019 GAAP EPS forecast to a range of $2.47 to $2.57, a decrease from the previous range of $2.66 to $2.76, to reflect the impact of restructuring expenses. It expects its adjusted EPS to range from $1.70 to $1.80.
The S&P Global Market Intelligence normalized consensus EPS estimate for 2019 is $1.76.
The company reported second-quarter net income of $614.8 million, or $1.42 per share, a significant increase from $217.6 million, or 47 cents per share, in the year-ago period. It recorded a gain of $524.6 million in the quarter due to divestitures of certain businesses.
ACI Worldwide Inc. in May completed its $750.0 million acquisition of SpeedPay Inc., Western Union's U.S. bill pay business.