Brinks cutting 3000 jobs worldwide
Richmond Virginia May 15, 2023
A restructuring plan at The Brink’s Companies will cut 3,300 to 3,500 jobs, the Henrico County-based armored truck company said.
Brink’s said its management completed a review of the plan during the first quarter, when the company reported its highest ever operating margin — the difference between revenue and the costs of providing its services.
But net income for the quarter fell by 79% to $15 million, hit by a 67.9% increase in interest expense, which reached $47 million, and recognition of $32.6 million in charges from the restructuring that the company expects ultimately will cost it a total of between $42 million and $48 million.
Cutting its workforce and related items would save about $60 million a year in operating expenses, the company said.
Brink’s said the restructuring is meant to cut costs, enable growth and mitigate potential impacts from a slowing economy.
The company reported a 10% increase in first quarter revenue to $1.19 billion.
The rises in operating earnings and margins “reflects higher levels of productivity including labor improvements in the U.S.” from the restructuring as well as improvements in revenue, said Mark Eubanks, president and chief executive officer.
“We have increased our 2023 profit expectations to reflect further restructuring,” he said.
Last week, Brink’s directors voted in favor of a 10% increase in the dividend it pays stockholders, increasing it from to 22 cents per share paid quarterly, up from 20 cents.
It was the company’s first increase since 2021, and Eubanks said it and the company’s purchases of its own stock to boost its price “reflect our commitment to drive long-term shareholder value by returning excess cash to our shareholders.”
In addition to providing secure transportation and cash management services, Brink’s is a large provider of ATM services.
The company employs about 100 people in metro Richmond and had about 69,500 full-time and 2,700 part-time employees as of last year.