NEW YORK (TheStreet) -- Shares of Pitney Bowes (PBI) are up 4.94% to $25.28 on heavy trading volume after CEO Marc Lautenbach said he expects flat or reduced employment levels next year as the mail and document-services company cuts costs further as it adapts to the digital era, the Wall Street Journal reports.
Expenses between May 2013 and September 30, 2014, have come down by $110 million, Lautenbach told the Journal.
The company hopes to save another $125 million between May 2014 and the end of 2017 with some of those savings coming from lower labor costs and productivity improvements, he said.
R&D outlays are "going up faster than our revenue," Lautenbach added. Overall revenue was down slightly last year, and Pitney Bowes has predicted a revenue increase this year of between 1% and 3%, the Journal said.
About 5.65 million shares of Pitney Bowes changed hands by 3:22 p.m. in New York, compared to the average of 1.59 million.
Separately, TheStreet Ratings team rates PITNEY BOWES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate PITNEY BOWES INC (PBI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, increase in stock price during the past year, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow."