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Articles about Cost Cutting

Cost-cutting Barclays bank swings axe on 5,600 IT and ops bods

Barclays will axe about 5,600 IT and operations staffers in 2014 in a massive restructuring effort. The at-risk techies work across the retail and investment arms of the British banking group. The plan is to achieve £1.6bn in savings by scrapping about 14,000 full-time staff over the next 12 months, a move unveiled on Thursday …
Gavin Clarke, 08 May 2014
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Dell: Gov's cost-cutting mania is driving away suppliers

Dell believes the UK government has squeezed suppliers too hard on price - to the point where the PC giant, and others, are walking away from public sector business. Major IT vendors, including HP, have already questioned where the Cabinet Office will go next to ease its budget woes, having forced the biggest players to lose a …
Paul Kunert, 31 Jul 2013
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Cost-cutting Serco says UK economy improving

IT outsourcing behemoth Serco Group says the outlook for the UK economy is decidedly brighter as the nation feels its way through the economic gloom. The services player reckons it is on track to meet 2012 targets with sales in the first half expected to grow 6 per cent, due to acquisitions made last year. In a steady-as-she- …
Paul Kunert, 14 May 2012

Logitech clings onto cost-cutting axe as sales, profit sail away

Losses widened at PC peripherals kingpin Logitech as OEM sales sank and restructuring charges kicked in. The company posted an operating loss of $59m (£38m) for fiscal Q1 2013, ended 30 June. This included a one-off charge of $34m in part to pay for redundancies. The same quarter a year ago recorded a $45m operating loss. Sales …
Paul Kunert, 26 Jul 2012
The Register breaking news

US pols sack Santa Claus in cost-cutting drive

A local government in New York state has cut Father Christmas from the county payroll as part of a vicious cost-cutting program. Suffolk County in New York state gave the popular red-suited character the boot on Friday as they grappled to trim their budget and fill a $135m hole, Reuters reports. Some 750 county employees are …
Team Register, 07 Nov 2011

Imation cutting 20 per cent of workforce amid losses

Imation is slashing one fifth of its workforce as part of a cost cutting programme and exploring "strategic options" for its consumer electronics biz. The troubled maker of tape, disk and optical media has reported yet another quarter of losses - it hasn't posted a profit since the end of 2009 - and needs to take corrective …
Paul Kunert, 24 Oct 2012
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UK.gov's cost-cutting 'shared services' went £500m OVER BUDGET

The Public Accounts Committee (PAC) has found that five government shared services centres cost a total of £1.4bn to set up, £500m more than expected, and in some cases cost more than the expected saving. In its report on efficiency and reform through shared services, the PAC says that the five centres were expected to have …
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Unilever cutting tech bods, moving jobs to Bangalore: 800 face axe

Unilever is entering into a redundancy consultation process with techies amid plans to relocate the UK tech hub from Ewloe in Wales to its head office in Merseyside and outsource "some" roles to India, although it would not confirm how many. Around 800 staff will face the chop by 2013. The move is part of a wider cost-cutting …
Paul Kunert, 15 Jun 2012
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CSC cost-cutting spreads to Europe

CSC staff in the US have been forced to take a compulsory, temporary pay cut, and now staff in Europe are being told they must take five days leave before 1 April to help the company hit its targets for the financial quarter. In an internal email – seen by the Register – Andy Williams, CSC's president and CEO, wrote: "We are …
John Oates, 28 Jan 2011
The Register breaking news

Yahoo! cutting! thousands! of! jobs! say! sources!

Yahoo! has declined to deny a report that it is planning another massive series of layoffs as it seeks to grow back to its former glories. Sources within the company told AllThingsD that every division was being examined for cost-cutting, and that the final number of staff to be let go could be numbered in the thousands. CEO …
Iain Thomson, 06 Mar 2012
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Cost-cutting spurs PC sales in Europe: UK stuck in a rut

The European PC market remains one big bargain basement clear-out, according to Q2 stats from channel analyst Context. Sales-out data collated from major distributors in the region showed that vendors' price-cutting efforts to reduce the glut of PCs in the supply chain fuelled a 3 per cent sales rise but as a result, …
Paul Kunert, 18 Jul 2011

Optus buries nasty for NBN Co in its annual results

A strong – almost stunning – rate of 3G-to-4G conversion hasn't stopped Australia's number two mobile carrier Optus losing mobile customers to market leader Telstra, and only its rigorous cost-cutting has allowed the carrier to return a profit for FY 2013-2014. Although the carrier's 4G base shot up from 785,000 people in 2013 …

Bye-Zynga: online games maker laying off 314 staff

Mobile game specialist Zynga has announced that it will be laying off some 15 per cent of its staff as part of a cost-cutting measure. The company said that the cuts would make 314 people at the company redundant. The lowered payroll costs would be part of a plan by the company to same some $33-35m over the course of the 2014 …
Shaun Nichols, 31 Jan 2014
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Maude talks cost cutting with ICT suppliers

A group of prime government ICT suppliers has met Cabinet Office Minister Francis Maude to discuss plans for cost cutting. A spokesperson for the Office of Government Commerce told GC News that on 8 July 2010 19 major public sector ICT suppliers were involved in "an initial meeting to discuss how money can be saved from the …
Kable, 09 Jul 2010
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Cost-slashing T Systems asks UK staff to pack their bags

T Systems UK is testing the appetite for voluntary redundancy among its workforce as part of a cost-cutting drive. The division of Deutsche Telekom, which provides desktop services, systems integration, computing and network services and e-business, informed staff yesterday of its proposal. "TSL management told us that they …
Paul Kunert, 16 Feb 2012

Hitachi Data Systems hands out P45s ... to EXECUTIVES

Cost-cutting Hitachi Data Systems has put a couple of senior execs on notice of redundancy, including UK and Ireland channel bigwig Neill Burton and veep for emerging markets Russell Hill. Staff were told about the potential redundancies yesterday, and promptly leaked it to The Channel. "The company has got to find further cost …
Paul Kunert, 28 Feb 2014
IDC

BYOD will cost a packet, warn experts

Enterprise mobility experts have warned IT managers not to enter bring your own device (BYOD) programs with cost reduction in mind, arguing that application development and support costs can quickly get out of hand if not strictly controlled from the start. IDC VP Tim Dillon told attendees at the analyst’s Asia Pacific …
Phil Muncaster, 13 Jun 2012
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The XP factor gives MEGA-DISTIE Ingram Q2 sales a boost

The tills rang often for massive global distie Ingram Micro during its second calendar quarter, helped by frenzied PC refresh activity, but squeezing out better long term profits remains a work in progress. The globe's largest distie reported a revenue hike of $600m year-on-year to $10.9bn. Despite a near six per cent leap in …
Paul Kunert, 25 Jul 2014
Monster Beats Pro

HTC Beats off loss, but shares slip after disappointing quarter

HTC saw its shares slip 3.61 per cent in Taiwan as it narrowly avoided a quarterly loss, saved only by booking a profit from selling its stake in headphone brand Beats Electronics. The Taiwanese smartphone maker reported a worse-than-expected net profit yesterday, of just $300m ($10m) compared to a net loss in the previous …
The Register breaking news

BT settles multi-million spat with cost-cutting consultants

BT has settled an £88m dispute with a consultancy it asked to find cost savings at its troubled Global Services division. Telecoms consultancy Magenta netLogic, owned by Global Capacity, was suing BT for £88m for alleged breach of contract. The consultants claim they were hired by BT to find savings at its troubled Global …
John Oates, 19 Feb 2010

SHOCK and AWS: The fall of Amazon's deflationary cloud

It's tough being a victim of your own business strategy, especially if you're Amazon founder and CEO Jeff Bezos. After spending twenty years applying a combination of price cuts, smart logistics, and ruthless efficiency to the publishing and music industries, Bezos' Amazon has grown into a vast company. But now the company's …
Jack Clark, 26 Jul 2014
The Register breaking news

Cyberspooks sceptical on UK.gov's IT cost-cutting plans

Whitehall IT chiefs have been warned by the intelligence agency GCHQ that security problems with cloud computing could foil their plans to use the technology to slash the cost of public services. The assessment forms part of the first report of the Cyber Security Operations Centre (CSOC), seen by The Register. The new internet …

BOOM BOOM: Dixons fires the human cannon

Dixons claims to have fired about 50 workers out the redundancy cannon in its latest battle against the human costs of doing business. At least 100 staff based at the Hemel Hempstead office were put on a 45-day notice of redundancy in early May, just days before Dixons went public with the £3.7bn Carphone Warehouse mega borg. …
Paul Kunert, 24 Jun 2014
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Beached whale Symantec watches revenues recede 7%

Symantec’s latest results show that you can wring more profit out of declining revenues by slashing costs but its not enough to bring you back to growth. Revenues in its fourth fiscal quarter of 2014 ended 28 March were $1.63bn, seven per cent down year-on-year, but net profit jumped 14 per cent to $217m. The full year numbers …
Chris Mellor, 09 May 2014

Dell's cash-saving voluntary redundo axe ker-chunks into Europe

Dell has confirmed that the Voluntary Separation Programme it kickstarted across the Atlantic before Christmas has finally crossed the pond. The cost-cutting initiative was made available to staff from late last year, but restrictions applied. Workers in EMEA, India or Singapore were not eligible, neither were folk in the …
Paul Kunert, 17 Feb 2014
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Oof! Brocade posts a loss after taking $81m kick in the profits

After four quarters of profits Brocade has posted a $14m loss, due to a costly goodwill write-off as it exits a hardware business. Revenues for the quarter were $537m, down five per cent from the prior quarter’s $565m and the year-ago quarter’s $539m (down one per cent). Three months ago it made a profit of $81m; this time it …
Chris Mellor, 23 May 2014
BBC Testcard

Psssst. Don't tell the Bride, but BBC Three is about to be jilted

BBC Three fans seeking their fix of that ugly phenomenon chillingly known as factual entertainment will soon only be able to watch programmes commissioned for that channel on the iPlayer, Auntie has said. The Corporation confirmed rumours on Wednesday that suggested that BBC Three would be axed from our telly screens. It's the …
Kelly Fiveash, 05 Mar 2014
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Pricey buys bring home bacon for Alternative Networks...sort of

Hauling in a heavy duty sales director and forking out millions for acquisitions has finally got the revenue dial moving in the right direction for AIM-listed Alternative Networks. It's not done the same for profits, though. The top line had stagnated and operating profits dipped in the previous fiscal year, so the comms-managed …
Paul Kunert, 05 Jun 2014
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Kelway plonks self in shop window with double digit rev hike

Privately held tech supplier Kelway has rolled out a healthy set of fiscal '14 prelims that won't do any harm to its chances of securing private equity investment or attracting potential trade buyers. The London-based mega reseller claims turnover grew 49 per cent to £526m in the year-ended 31 March, partly fuelled by 45 per …
Paul Kunert, 19 May 2014
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Juniper Networks UK bigwig hotfoots it to Alternative Networks

Juniper UK and Ireland boss Mark Quartermaine is hot-footing it to one of the firm's biggest channel partners, Alternative Networks, where he will be COO from next month. The former IBM, C&W, BT Global Services and Azzurri exec initially joined LSE-listed Alternative as a non-exec director in January last year but his …
Paul Kunert, 24 Apr 2014

HP Enterprise Services staff feel the burn as managers turn off the cash taps

HP is turning the screws on folk in its Enterprise Services (ES) division to squeeze out overheads in a bid to hit "specific Must Do Numbers" for fiscal '14. On a global basis, ES revenues slipped seven per cent year-on-year in Q2 (May quarter) to $5.7bn and profit before tax was flat at $144m - the figures are not broken down …
Paul Kunert, 20 Jun 2014

Former Toshiba bigwig Andy Bass rocks up at Open Symmetry

Former Toshiba exec Andy Bass has landed at sales performance management (SPM) consultancy Open Symmetry as head of European ops. Bass recently exited Toshiba after 24 years' service amid a regional cost cutting shake-up that saw his dual roles as European veep for the PC and TV biz and UK country director evaporate. SPM …
Paul Kunert, 17 Mar 2014
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Tech Data dials up operations man for Europe

Tech Data (TD) continues to bulk out the management team post accountancy probe, hauling in former Ingram Micro UK boss Johan Vandenbussche to head up Operations across Europe. Under the newly created position, the industry vet will oversee HR, logistics, IT coordination and the internal consulting team, which is designed to " …
Paul Kunert, 06 Mar 2014
Scotland

Scottish gov may miss IT budget cut target

The Scottish government is unlikely to hit a public sector savings target after new data revealed that halfway through a five-year billion-pound savings drive, bureaucrats shaved just six per cent from its IT budgets. In a report published in June 2011, the businessman John McClelland called for savings of between £870m and £1bn …
Team Register, 18 Mar 2014
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Exec teleports from Dell, channel organs absorbed into Texan Borg

Dell has stitched together its global channel organisations, saying that improving "support" for resellers and integrators is at the forefront of its mind - and not cost cutting. The move comes days before Dell shareholders vote, on 18 July, on whether to accept CEO Texan Mick's offer of $13.65 per share to take the whole …
Paul Kunert, 12 Jul 2013
Angry Birds

Look, pal, it’s YOUR password so it’s YOUR fault that it's gone AWOL

Dear Mr Dabbs. Thank you for your business. Please see invoice enclosed. This doesn’t bode well: I am not the sort of person who is able to make private purchases on account. As much as I’d love to swan into a shop, point at various things and drawl “Send them over, will you, darlings?” as I saunter off into a waiting limo, …
Alistair Dabbs, 23 May 2014
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IBM throws open doors of XaaS supermarket

IBM has thrown open the doors of its “cloud marketplace” a software-and-infrastructure-and-platform-as-a-service supermarket that offers its own and third party products. The marketplace has three main elements. The foundation is the familiar SoftLayer infrastructure-as-a-service service, which like rivals from AWS, Google, …
Simon Sharwood, 29 Apr 2014
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EMC boss Tucci’s last battle: Stopping a forced VMware selloff

With Joe Tucci, EMC head honcho, set to retire on February next year, the very last thing he wanted was an attack by one of the biggest, baddest activist investors of all: Paul Singer’s Elliott Management. Elliott has communicated to EMC that it has a $1bn investment in its shares and would like VMware spun off so that EMC …
Chris Mellor, 22 Jul 2014
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SACK MORE BRITS, Symantec UK told by US supremos - sources

Symantec UK bosses must redraft their master plan to layoff Brit workers - after their first proposal was rejected by the US top brass for not cutting far enough, sources claim. As we reported a week ago, up to 1,700 employees worldwide - eight per cent of the total workforce - are expected to get the chop during June and July …
Paul Kunert, 21 Jun 2013

Barclays warns freelance techies of DOUBLE DIGIT rate cut

Cost-cutting Barclays has incurred the wrath of all its contractors, including techies, by confirming plans to slash rates by ten per cent from next month. This is the third cut to IT freelancers in as many years, say our sources, and comes as the business prepares to wave goodbye to up to 12,000 workers worldwide including 7, …
Paul Kunert, 11 Mar 2014

'800lb Fibre Channel gorilla' Brocade axes 300 staffers worldwide

SAN fabric leader and Ethernet networking wannabee Brocade is going to fire 300 people to cut costs as it realigns its resources towards data centres and software-defined networking. The pink slip news was slipped out in an SEC 8-K filing (PDF) on 10 September. This should take its headcount from 4,180, to 3,880. Stifel …
Chris Mellor, 11 Sep 2013
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Dixons Retail and Carphone Warehouse mull merger

Dixons and Carphone Warehouse (CPW) today confirmed they are locked in negotiations that may or may not lead to a merger. "These discussions are at a preliminary stage and there can be no certainty that a transaction will be forthcoming," the pair said in a joint statement this morning. As such, no decision has been made …
Paul Kunert, 24 Feb 2014

Misco set to snap up Phoenix's network ops centre AND its staff

Phoenix IT Group is set to offload its network operations centre in High Wycombe to Misco, TUPEing across staff in the process. The lease on the building is expected to be assumed by direct marketing reseller Misco, which, under the guidance of former Dell exec Pim Dale, is trying to rely less on tin shifting by building a …
Paul Kunert, 14 Feb 2014
The Register breaking news

Buh-bye Siemens: Nokia to splash €1.7bn turning NSN into N

Nokia is buying out its network partner Siemens, for €1.2bn in cash plus a half-a-billion loan, putting the Finnish firm in sole control of the infrastructure business. Ownership of Nokia Siemens Networks (NSN) is split equally between the companies, and managed to turn a thin profit last year following repeated rounds of cost- …
Bill Ray, 01 Jul 2013
Flinders map of Australia as published in 1814

Microsoft crows about 149k-seat Office 365 deal that costs it MILLIONS

The Australian State of Queensland does not observe daylight saving and an old joke about the state says that air travellers entering the region have in the past been advised to “turn your watch back one hour and 50 years.” How then, to consider the State's decision to head for the cloud with a 149,000-seat deal for Microsoft's …
Simon Sharwood, 10 Apr 2014
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Sonos turns up volume, slips out new Wi-Fi speaker control app

Streaming Wi-Fi speaker supplier Sonos has updated its speaker app so that it looks a little nicer and does more. Screen appeal on tablets is not so good, however, and it doesn't solve an existing Playbar surround sound issue. This software, known as the Sonos controller (v5.0), runs in iOS v6.0 or higher, as well as on Android …
Chris Mellor, 21 May 2014
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Tech Data names CE director after divisional shake-up

Distie goliath Tech Data (TD) UK has handed company veteran Mark Glasspool the directorship of its consumer electronics division following a summer shake-up. Glasspool will retain his role as director of strategic opportunities at TD, which he has held since May '12, and oversee the ten-strong CE team. In a canned statement, he …
Paul Kunert, 16 Oct 2013
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HP's hiring: UK jobs for, er, UK workers.... maybe

HP has refused to rule out making roles redundant in the UK and shifting them to parts of Europe where average salaries are lower. Cost cutting HP last week entered into consultation with the works council and yesterday engaged with union types over plans to slash 7,100 roles across the region, the last tranche of 34k job cuts …
Paul Kunert, 10 Feb 2014
Don Basile

Violin cuts strings with CEO: Don Basile axed post-IPOcalypse

Violin Memory has fired its CEO Don Basile as the company's shares slumped more than 60 per cent following its IPO and horrendous quarterly financial results. According to a blunt statement from the storage biz, its board, led by chairman Howard Bain, decided "to terminate Donald Basile as chief executive officer". Bain is now …
Chris Mellor, 16 Dec 2013

Axe falls: Virgin Media plans to kill 600 management jobs

Virgin Media is shedding up to 600 management jobs in the wake of Liberty Global's takeover of the British telco. The Register understands that the cost-cutting restructure is intended to help the company focus on growth. A source close to the situation told us that, in the coming months, most of the other UK-based positions – …
Kelly Fiveash, 20 Sep 2013