UPS said employees who took a retirement buyout will leave the company over the next 12 months.
The Sandy Springs-based shipping giant said Tuesday it was not disclosing how many employees have taken the buyout, but that they will leave on a staggered schedule “to maintain business continuity.”
“This initiative will reduce UPS headcount and lower ongoing staffing expense,” UPS said in a press release.
UPS did say it is taking a $263 million charge in its second quarter financial results, primarily due to severance for the retirement buyouts.
Once the buyout program is completed in the second quarter of 2019, the company expects it to generate annual savings of around $200 million. It does not expect significant savings from the buyouts this year.
UPS announced the voluntary retirement plan in April, offering some of its U.S.-based management employees eligible for retirement a buyout to retire.
The company said it will give more details on its long-term strategy at a “Transformation Conference” in New York in September.