Beyond the 2,300 positions eliminated in Q3, Pitney Bowes cut 367 jobs in Q2 in the cost rationalization plan's initial rollout. The initiative has brought $90 million in annualized savings since its launch, per an investor presentation.
While the plan has primarily focused on headcount so far, Pitney Bowes is now targeting external expenses in its next phase, CEO Lance Rosenzweig said on a Nov. 7 earnings call. However, these cuts may take a few quarters to be reflected in the company's bottom line, he said.
"Examples would be things like insurance savings and contract renegotiations and outsourcing vendors that our team is confident that it will bring in-house for savings, et cetera," Rosenzweig said. "So these are all expenses that we have identified and that we have a plan to implement."