United Parcel Service Inc. is taking a $263 million pretax charge in the second quarter related to its voluntary retirement plan that offered buyouts to employees.

The plan—announced in April as part of a broader effort to trim costs and boost efficiency—is expected to generate annual savings of around $200 million, the company said in a statement Tuesday. The predicted savings hinge on reduced headcount and lower operating costs. Savings from the program won’t be fully realized until the second half of next year, UPS said.

The logistics giant is under pressure to lower the expense of surging home deliveries and increased competition, including from Amazon.com Inc., which announced in June it’s creating a delivery network to handle more of its own packages. The company is stepping up investment in cargo planes, warehouse automation and software that finds the fastest route for delivery vans.

UPS is relying on technology to help it streamline work processes, improve customer service and create new growth opportunities, the company said in the statement. “These initiatives will also create new opportunities for UPS employees and strengthen shareowner returns.”