Austin, TX July, 15 2005 – The University of Texas has outsourced its central receiving and delivery department to Austin's MagRabbit Inc., a move the school says will cut 20 jobs and save $200,000 a year.

MagRabbit took over the duties July 11. It oversees receiving products from vendors, checking for quantity and damage, delivering to campus departments and providing other shipment services.

UT says the 20 affected university employees will have six months before their positions are eliminated. The school says it will try to place the workers with MagRabbit or elsewhere at the university.

"Our human resources services people will keep in their files that these are 'special consideration employees,' which puts them at the top of the list for employment opportunities," says Kevin Hegarty, UT's vice president for financial affairs.

Hegarty says the deal is "a means of reducing our immediate cost and better controlling the growth of future cost, while at the same time providing the same level of receiving and delivery service this campus has come to know and expect."