Western Union Co. (WU) announced plans to streamline its
operations, with executive numbers being trimmed and facilities
closed.
The plans include the elimination of 175 positions and migration
of work now performed by another 550. Western Union has some 6,800
workers.
Chief Executive-elect Hikmet Ersek said, "Simplifying our
structure will allow us to improve our productivity and customer
focus, capitalize on growth opportunities, and enhance long-term
financial returns for our shareholders."
Western Union struggled last year as demand for money transfers
dwindled during the recession because of high unemployment in the
U.S. Strong demand in international markets partly made up for the
softness in the Americas.
The company said last month that Ersek, who is current chief
operating officer, would succeed the retiring Christina Gold as CEO
on Sept. 1.
Shares closed Wednesday at $15.66 and were inactive premarket.
The stock is down 17% this year.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com