By Imani Moise

Human Resources software company Automatic Data Processing Inc. (ADP) said Thursday that it has offered roughly 6% of its workforce the opportunity to retire early to reduce payroll expenses.

The company made the offer to about 3,500 employees age 55 or older with at least 10 years of service to the company. If 35% of those employees accept, the ADP estimates annual savings of about $125 million.

The company also expects to incur about $250 million in charges through the end of 2019, assuming 35% of eligible employees opt into the program. Everyone who participates in the program is anticipated to retire by March 2019.

Shares edged 0.9% lower to $114.27 during midday trading. The stock has risen 9.3% over the past year while the S&P 500 has gained 13%.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

March 01, 2018 13:31 ET (18:31 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.
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