US e-payments processor First Data says it is cutting three per cent of its workforce and will implement further cost reduction measures before the end of the year.
In a statement, First Data says the job cuts will mainly affect staff at its under-performing card issuing division, which the vendor is looking to shed.
The company will take a restructuring charge in the fourth quarter of approximately $0.05 per share related to the job cuts and this, along with other charges, will cause the firm to fall short of previous estimates for Q4 earnings of $2.14 to $2.16 per share.
First Data says it expects to take additional actions "aimed at further reducing overall operating costs" before the end of the year.
Ric Duques, chief executive officer, First Data, says: "While the restructuring charges we are taking to strengthen the company will reduce our GAAP earnings for the quarter, on an operating basis, the company is performing as expected. At this point in the holiday season, we are pleased with the performance of our Western Union, domestic merchant, and international businesses."