First Data Announces Layoffs
First Data Corp. is cutting 6% of its global work force.
The Denver processor announced the cuts last week, during a conference call to discuss its third-quarter earnings.
The announcement comes after the company's September acquisition for $29 billion by the New York private-equity company Kohlberg Kravis Roberts & Co.
"The company clearly has significant potential for structural cost savings," said Michael Capellas, who became First Data's chairman and chief executive after the purchased closed.
"We are on track to achieve approximately $200 million in annual savings in 2008. Most of these near-term savings will come from the reduction of corporate and business unit overhead spending, including head-count reductions, Mr. Capellas said.
First Data employs about 29,000 people, according to its Web site.
The company reported third quarter net income of $35 million, down 73% from the same quarter last year, mainly due to expenses related to the KKR acquisition. Revenue in the quarter climbed 16% to $2.1 billion.