UTI Worldwide to Cut Workforce

Freight forwarder UTI Worldwide plans to cut its workforce by 7%, eliminate divisions in the Americas and Africa and restructure management in an effort to its boost its profitability, the company said Friday.

The changes will reduce operating expenses by as much as $110 million a year, and cut sales by as much as $80 million, the company said.

The company also lowered fiscal year 2008 earnings guidance to 90 cents to 94 cents per share, including restructuring charges, and cut its forecast for full-year earnings per share to between $1.09 and $1.15, from an earlier outlook of $1.14 to $1.22.

UTI will exit its retail distribution business in Africa and an “integrated logistics” operation in the Americas, the British Virgin Islands-based company said in a statement.

“Rapid expansion has led to increases in expenses that have outpaced net revenue growth,” Chief Executive Officer Roger MacFarlane said. “The steps we are taking are designed to reduce costs and improve profitability.”

The company’s UTi Integrated Logistics division is ranked No. 24 on the Transport Topics Logistics 50 listing of U.S. and Canadian logistics companies.