Exela Technologies expects $65M to $75M in savings for FY23

Exela Technologies announced updates to its 2023 operational performance improvement objectives. During the fourth quarter, the company announced operational performance improvement targets by focusing on automation led efficiencies. The company has identified additional savings to help restore historically higher margins relative to recent financial reporting periods and plans to right-size the organization in the face of continuing tight job markets and higher employee costs. Exela expects savings in the range of $65M to $75M for 2023, including the initiatives announced in Q4 2022. The company’s actions include headcount optimization, real estate reduction and increased cloud usage. The company’s global workforce is expected to shrink; however, the company will continue to maintain substantial flex capacity through its cloud-based WFA platforms to quickly ramp growth as needed. The company looks forward to providing investors with additional updates during earnings calls.