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- Pitney Bowes (NYSE:PBI) on Monday jumped as much as 12% after the shipping and mailing company increases its cost-savings target to $120 million to $160 million from $60 million to $100 million previously.
- The company said it already had eliminated about $70 million in costs and that the new target will be mostly seen in pretax earnings for the second half of 2024 and in 2025.
- It has focused on general corporate cost cuts and foresees additional savings in its global e-commerce segment, which is in the final stages of a strategic review.
- “Since announcing our strategic initiatives in late May, new leadership has been operating with intensity and urgency to accelerate the turnaround of Pitney Bowes,” Interim Chief Executive Lance Rosenzweig said in a statement.
- Activist shareholder Hestia Capital has pushed for change at Pitney Bowes (PBI). In January, Hestia nominated seven people to the company’s board of directors, after building a 7.2% stake in the company.
- The board had “failed to address a decade of dismal returns, driven by misguided strategy, failed execution and missed opportunities,” Hestia said at the time.