As part of a long term cost saving measure, UPS has announced the initial results of its Voluntary Retirement Plan (VRP).

The VRP, introduced on the 25th April, is a scheme where a select group of US based employees who were coming up to retirement were offered a financial buyout to retire.

According to a statement this week from UPS, “Participants in the plan will depart on a staggered schedule over the next twelve months to maintain business continuity.

“The company does not expect significant savings in 2018 from the VRP, full savings from the program will be realized upon completion after the second quarter 2019. UPS recorded a pre-tax transformation charge of $263 million in the second quarter, due primarily to VRP severance expense.

“This initiative will reduce UPS headcount and lower ongoing staffing expense. At full run rate, the initiative will generate annual savings of around $200m.”