STAMFORD, Conn. - Pitney Bowes Inc . (NYSE:PBI), a prominent global shipping and mailing company, announced the immediate retirement of Gregg Zegras, President of its Global E-commerce segment. Zegras, who has been with the company since 2013, previously held the position of Chief Commercial Officer among other senior roles. The company expressed gratitude for Zegras' service and contributions over the years.
The departure comes as Pitney Bowes is nearing the completion of a strategic review of the Global E-commerce segment. This review, as mentioned in the company's statement on May 22, 2024, is focused on evaluating options to address the ongoing losses within this division. The company has not yet disclosed specific outcomes or strategies resulting from this review.
In the interim, the responsibilities of the Global E-commerce segment will be managed by the current personnel at Pitney Bowes. The company has not indicated any immediate plans to seek a replacement for Zegras.
Pitney Bowes serves a broad range of clients, including over 90 percent of the Fortune 500, offering solutions that simplify the complexities of shipping and mailing.
This announcement is based on a press release statement.
In other recent news, Pitney Bowes Inc., a global technology company, has been making significant strides in its cost reduction efforts and leadership changes.
The company has recently announced a plan known as the "2024 Plan" aimed at reducing expenses and improving efficiency, expecting to incur one-time, pre-tax charges of about $25 million related to severance costs. The plan, which includes workforce reductions, is part of the company's strategy to accelerate value creation and is expected to be completed by the first quarter of 2025.
Furthermore, the company has reported progress in its cost-cutting efforts, achieving around $70 million in savings and targeting up to $160 million in total cost reductions. These savings are expected to be reflected in the pre-tax earnings for the second half of 2024 and fully by the 2025 fiscal year. Lance Rosenzweig has been appointed as interim CEO, focusing on the company's core, cash-generating segments.
In terms of earnings, Pitney Bowes reported a significant 71% improvement in EBIT from the previous year in the first quarter of 2024, despite flat overall revenue. The company's Presort Services segment hit record revenue and EBIT, and the Global E-commerce segment saw a 20% increase in domestic parcel volumes. These are all recent developments that highlight the company's ongoing efforts to streamline operations, reduce costs, and enhance shareholder value.
InvestingPro Insights
As Pitney Bowes Inc. (NYSE:PBI) navigates through strategic changes, particularly with the recent retirement of a key executive and the review of its Global Ecommerce segment, investors may be seeking clarity on the company's financial health and future prospects. The following insights from InvestingPro may provide valuable context:
InvestingPro Data highlights a significant return over the last week, with a 27.41% price total return. This surge is part of a larger pattern of strong performance, including a 76.59% return over the last year, indicating robust investor confidence despite the challenges faced by the company. Additionally, the company's stock is trading near its 52-week high, at 99.17% of this benchmark, reflecting a positive market sentiment.
Moreover, Pitney Bowes has maintained dividend payments for 54 consecutive years, which is a testament to its commitment to shareholder returns. The current dividend yield stands at 3.36%, with the last ex-date recorded on May 22, 2024. This consistency in dividends could be a reassuring signal for long-term investors looking for stability in their investments.
InvestingPro Tips suggest that while the company's net income has not been profitable over the last twelve months, analysts predict Pitney Bowes will be profitable this year. This projection, coupled with the company's significant return over the last week and strong return over the last three months, suggests a potential turnaround in financial performance that may align with the strategic initiatives being undertaken.
Investors interested in a deeper analysis can find additional InvestingPro Tips at https://www.investing.com/pro/PBI. For those looking to access the full range of insights, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. Currently, there are 10 additional InvestingPro Tips available for Pitney Bowes Inc., providing a comprehensive outlook on the company's financial metrics and market performance.
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