Easy enough:

open(CUST, "cust_info.txt");
while (<CUST>) { print ((split ('\|'))[1], "\n"); }
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Update: My apologies...even after reading the question twice before answering, I still missed what you were trying to do. :)

open(CUST, "cust_info.txt");
while (<CUST>) {
    $full_name = (split '\|')[1];
    $full_name =~ s/(\w)\w*\s+(.+$)/$1. $2/;
    print $full_name, "\n";
}
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is probably more what you're looking for.