Dallas-based MoneyGram to cut 90 jobs as part of plan to reduce spending

Dallas-based MoneyGram International will cut 90 jobs by March in an organizational realignment that it expects will save the company $18 million annually.

The company disclosed the job cuts in a regulatory filing Wednesday.

“The actions are designed to streamline operations and structure the company in a way that will be more agile and aligned around its plan to execute market-specific strategies,” MoneyGram’s filing said.

The expected cost of the job cuts are $9.7 million, with most of that — $6.2 million — coming in severance payouts, the company said. The other $3.5 million is in real estate-related savings and other cash expenditures.

MoneyGram said it expects to complete the workforce reduction in the first three months of 2021.

The company has been working to digitize its money-transfer business for several years. In its third quarter 2020 results, MoneyGram said digital transactions rose 106{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1} compared with the same period a year ago and accounted for 95{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1} of its revenue growth.

Earlier this month, MoneyGram reported record online transactions during the holiday season. It said online cross-border transactions rose 142{c25493dcd731343503a084f08c3848bd69f9f2f05db01633325a3fd40d9cc7a1} year-over-year in December.

In November, JPMorgan analysts expressed doubts about the company’s digital prospects.

“… Despite liking the firm’s digital transformation, we believe the company’s traditional walk-in business may not return to pre-COVID-19 levels,” the analysts wrote in an investor note. “This puts more pressure on the digital business to carry the growth load, and digital peers are well-capitalized without the profit/leverage burden that [MoneyGram] faces.”

The six deals involving Dallas-Fort Worth companies so far this week come after eight acquisitions were announced last week.

Next Post

Freeport High School moves to online learning as COVID-19 outbreak continues

Thu Jan 14 , 2021
FREEPORT — All Freeport High School students will attend classes online until at least Jan. 19 after two more students tested positive for COVID-19 earlier this week. According to Regional School Unit 5 Superintendent Becky Foley, a student who tested positive on Monday may have come into contact with students […]

You May Like