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UPS said it recorded a $263 million “pre-tax transformation charge” in the second quarter, due primarily to VRP severance expense.

UPS said employees who accepted the financial buyout to retire will depart on a staggered schedule over the next 12 months to maintain business continuity. UPS said it does not expect significant savings in 2018 from the VRP, and that full savings from the program will be realized upon completion after the second quarter 2019.

UPS said this initiative will reduce its headcount and lower ongoing staffing expense.

 

Europe’s top court should rule against the EU’s veto of United Parcel Service’s (UPS.N) takeover bid for Dutch peer TNT because of procedural errors by regulators, a court adviser said on Wednesday.

Such a judgment from the Court of Justice of the European Union (ECJ) could boost UPS, the world’s largest package delivery company, in its lawsuit against the European Commission for 1.7 billion euros (1.51 billion pounds) in damages.

The Commission in its 2013 decision said UPS had not offered sufficient concessions to address its concerns that the 5.2-billion-euro ($6.1 billion) deal would lead to higher prices.

Revenue at the company’s U.S. package services rose 6.3 percent versus a year ago, fueled by e-commerce demand and increased revenue per piece.

The rapid rise in online shopping has been a boon for so-called “last-mile” shipping, but UPS has struggled to bring down the extra costs of delivering small numbers of packages to individual households.

Chief Executive David Abney has promised to deliver higher margins by pumping billions of dollars into network upgrades and expansions to handle the growth from e-commerce, and he is under pressure from some analysts and investors who want faster returns on those investments.