UTi Worldwide announced that it has committed to a plan to simplify its leadership structure and to shift management of its freight forwarding business from four geographic regions to a global leadership structure managing approximately 17 discrete geographic areas.
As part of the restructure the company will reduce several leadership positions and will no longer maintain regional infrastructures. Following the reorganization, the UTi Worlwide will continue to have two lines of business, freight forwarding and contract logistics and distribution. The company will also continue to utilize the 1View freight forwarding operating system. The reorganization is the result of a review UTi’s new Chief Executive Officer, Edward Feitzinger, and is intended to simplify the company’s organizational structure, to facilitate faster decision-making, to enable the company to better serve the needs of its clients and to reduce the UTi’s cost structure.
In connection with the reorganization, the company expects to reduce a number of positions worldwide. Such headcount reductions are expected to be substantially complete by January 31, 2015, however, due to local legal requirements, some actions are expected to extend into the first quarter of fiscal 2016. UTi estimates that the reorganization and other related actions will result when fully implemented in $30m to $40m of expected annual cost savings.
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