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Ryder to cut 2,100 jobs
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January 20, 1997: 7:08 p.m. ET
Company to close 200 facilities, take $215 million charge in restructuring
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NEW YORK (CNNfn) - Ryder System Inc. said Monday it will cut about 2,100 jobs and close about 200 facilities in an ongoing restructuring effort aimed at cutting costs and improving profits.
The company also said it will take a pretax charge of $215 million in the fourth quarter of l996 that would result in a net loss for both the quarter and the year.
Steps taken so far in the restructuring are expected to produce pretax savings of about $75 million in l997 and more than $150 million the year after that, Ryder CEO M. Anthony Burns said in a statement.
Burns said the changes are necessary for the company to position itself for future success.
"Important as these savings are, the real heart of the program is the structural change we have made in our leading lines of business. We have put our integrated logistics and truck leasing and rental businesses in a position to succeed and we will accept no less," he said.
Ryder sold its consumer truck rental business -- the famed fleet of yellow Ryder trucks -- in 1996. Officials also announced last October that they were reviewing options for the future of the company's automotive carrier unit.
About 700 employees have already taken advantage of a voluntary early retirement program that was offered late last year as part of the restructuring, the company said.
Shares of Ryder closed up 3/8 at 29 7/8 Monday on the New York Stock Exchange.
--Cyrus Afzali
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Ryder System Inc.
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