TransUnion said it will cut its workforce by 10%, or roughly 1,300 jobs, as part of a plan to reduce costs and fund growth, the consumer credit reporting agency announced Wednesday.
The company expects to deliver $120 to $140 million of annualized operating expense savings and a $70 to $80 million capital expenditure reduction in 2026 relative to 2023 levels.
About half of the operating expense savings are expected to be realized in 2024, TransUnion said.
The TransUnion headquarters in Chicago on Wednesday, Oct. 4, 2023. (Christopher Dilts/Bloomberg via Getty Images)
The staff reduction is part of a multiyear transformation plan to optimize the company’s operating model and advance its technology. TransUnion said it will leverage Neustar’s cloud-native technology to create its next-generation integrated data management, identity resolution, analytics and delivery platform.
"While these changes involve difficult decisions, they strengthen TransUnion and create an opportunity to extract more value from our recent acquisitions," TransUnion CEO Chris Cartwright said in a statement.
TransUnion CEO Chris Cartwright testifies during a Senate Banking Committee hearing on oversight of credit reporting agencies, on Capitol Hill April 27, 2023, in Washington, D.C. (Drew Angerer/Getty Images)
TransUnion said it also expects to incur around $355 million to $375 million of one-time pre-tax expenses, with the majority taken on by the end of next year. Those numbers include approximately $155 million in employee separation and facility exit costs.