TransUnion (NYSE:TRU) will shift more of its workforce to its Global Capability Centers (“GCC”) in India, South, Africa, and Costa Rica to drive cost savings and boost productivity, a move that’s expected to impact ~10% of its current workforce through relocation to GCC sites and job cuts, the company said Wednesday.
The company expects to incur ~$355M-$375M of one-time pretax expenses, with the majority recorded by the end 2024.
TransUnion (TRU) is targeting $120M-$140M of annualized operating expense savings and a $70M-$80M reduction in 2026 capital expenditures relative to 2023 levels. About half of the operating expense savings, which exclude depreciation and amortization, are expected to be realized in 2024.
Capital expenditures are expected to increase to 9% of revenue in 2024 before returning to 8% in 2025. In 2026 and beyond, the company expects capex to be 6% of revenue.
Besides shifting resources to GCC operations, the company plans to complete its cloud migration by the end of 2024, as planned.
“We believe these investments will help optimize our global operating model and enhance our market-leading technology to reduce costs, accelerate innovation, and drive growth,” said President and CEO Chris Cartwright.
Shares in TransUnion (TRU) rose 0.6% in premarket trading.