Freight logistics company UTi Worldwide Inc. on Friday, Feb. 8, announced a major restructuring plan to cut costs. The company said it will close certain units in Africa, the Americas and some other underperforming businesses, trim its work force by 7 percent, cut the number of its airfreight charters and end some contracts.
UTi also said co-founder and Chief Executive Officer Roger MacFarlane will take on the responsibilities of chief operating officer, and current COO John Hextall will become president of global freight forwarding operations. Co-founder and Vice Chairman M.J. “Tiger” Wessels was pegged to succeed Chairman J. Simon Stubbings, who will retire in June.
UTi said it plans to take roughly half of its restructuring costs in the fourth quarter; cost cuts are expected to reduce annual revenue by $75 million to $85 million, but also reduce operating expenses by $105 million to $110 million.
