TransUnion plans to reduce 10% of workforce amid cost reductions

TransUnion announced yesterday morning “the next step in its ongoing, multi-year transformation effort to optimize its operating model and advance its market-leading technology.” The company said it will transition additional roles to its Global Capability Centers to improve productivity, reduce costs and fund growth. “TransUnion will also leverage Neustar’s cloud-native technology to create its next-generation integrated data management, identity resolution, analytics and delivery platform. The Company believes these actions will reduce costs, accelerate innovation and increase organic growth.” The company expects to deliver $120M to $140M of annualized operating expense savings and a $70M to $80M capital expenditure reduction in 2026 relative to 2023 levels. Approximately half of the operating expense savings, which exclude depreciation and amortization, are expected to be realized in 2024. TransUnion expects to incur $355M to $375M of one-time pre-tax expenses, with the majority incurred by the end of 2024. Employee separation and facility exit costs are expected to make up approximately $155M of the total. The remaining expense includes $65M already planned and communicated to complete Project Rise plus $145M to implement OneTruTM and optimize the operating model. Capital expenditures are expected to increase to 9% of revenue in 2024 and return to 8% in 2025. In 2026 and going forward, the company expects capital expenditures to be 6% of revenue. Altogether, the program is expected to impact approximately 10% of the company’s current workforce through relocation to the GCC locations and position eliminations.