Feeds

Articles about Cost Cutting

top of the bt tower

BT: Consumers and cost cutting save the day

Cost cutting and 88,000 new broadband punters helped BT bank more profits in calendar Q3, although revenues went in the opposite direction as all divisions outside of the consumer wing reported declining fortunes. The former comms state monopoly turned over £4.38bn of sales in the quarter ended September, down two per cent year- …
Paul Kunert, 30 Oct 2014
management consumerisation

Ingram UK basks in rosy glow of ... successful cost-cutting

Throwing costs overboard, smaller interest repayments and walking away from lower-margin business beautified Ingram Micro UK’s bottom line in calendar ’13, as its latest Companies House filing reveals. The Milton Keynes-based biz reported turnover of £968.5m, up 2.15 per cent, or 1.4 per cent when inter-group trade (£36.7m) was …
Paul Kunert, 14 Oct 2014

Cost-cutting pays off for Symantec as profit lifts

Software security, data management and protection behemoth Symantec has cashed in on hacking fears with an upswing in product sales, giving itself a revenue and profits lift. Revenues for its first fiscal 2015 quarter, which finished on 4 July, were $1.74bn, up a mere 1.5 per cent on a year ago, and a more flattering 6.4 per …
Chris Mellor, 07 Aug 2014

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
francis_maude_flames_evil

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

US giant Avnet plots cost slash fest in EMEA enterprise tech arm

The EMEA wing of enterprise distie Avnet Technology Solutions is again in cost-cutting mode after a double-digit sales dive blighted a growth spurt across the pond as local PC system builders missed out on the XP refresh. Revenues for Q4 of fiscal’14 ended 28 June were $2.73bn, up 0.3 per cent on an organic basis, or 4.2 per …
Paul Kunert, 07 Aug 2014
5_pounds_sterling_money_cash_moolah

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
g_cloud_uk_gov

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 …

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
marmite unilever spread sandwich snack

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
channel

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
management project3

CSC set for ANOTHER re-org but no redundancies involved

Re-arranging the UK deck chairs on good ship CSC is the strategy the integrator has chosen after shelving plans to make further redundancies, according to numerous sources. The US-owned business does not generally shy away from making redundancies, axing 750 people from its Brit operation in late April and parting company with …
Paul Kunert, 10 Nov 2014
channel

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
Swiss Cow

Street-beating Brocade bounces back

Storage networking biz Brocade has bounced back from its disappointing and loss-making second quarter results with third quarter profits and a revenue rise. The quarter finished on 2 August and revenues of $545m were 2 per cent up on the previous quarter and the year-ago one – not dramatic but nice and steady. Net income (profit …
Chris Mellor, 22 Aug 2014
graph up

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

PRE-SPLINTERED Symantec's Q2 revenue slips, net profit rises

Symantec has reported mixed second quarter results, with revenue down one per cent on the year, but net profit rising by the same amount. The company saw revenue of $1.62bn for its second fiscal 2015 quarter, compared with revenue of $1.64bn a year ago (a fall of one per cent), and $1.74bn in the previous quarter. Net profit of …
Chris Mellor, 06 Nov 2014
Job cuts jpeg

'Careful management of headcount' for Juniper after tepid quarter

Juniper Networks has reported a difficult third quarter that left CEO Shaygan Kheradpir “disappointed” by “lower-than-anticipated demand from service providers, particularly in the U.S.” Revenue was $1,126 million, down eight per cent from 2014's second quarter and five per cent compared to the same Q3 in 2013. Non-GAAP net …
Simon Sharwood, 24 Oct 2014
homeless man with sign

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

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
Sprint CEO Marcelo Claure

Sprint swings axe: Another 2,000 staffers for the chop

Struggling US mobile network Sprint Corp is swinging the axe further and deeper as another 2,000 jobs are to go on top of the nearly 500 announced last month. The move is part of a $1.5bn cost-cutting plan – of which $400m of the savings will be workforce costs – and following on from results that show a a $765m net loss and a 3 …
Simon Rockman, 04 Nov 2014
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
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
management social5

Deckchairs shifted aboard tech liner HP's services biz

An EMEA-wide overhaul dreamed up by HP execs to lift the fortunes of the Enterprise Services division — and cut out costs — will be implemented in time for the fiscal New Year starting next month. Under the new-look biz, ES has consolidated from nine sub-regions into four ‘super’ clusters including North (Benelux and Nordics), …
Paul Kunert, 16 Oct 2014
Instagram logo

Not so Instagram now: Time-shifting Hyperlapse iPhone tool unveiled

Filtered snap app Instagram has unleashed a new tool that will allow users to shoot and post "time lapse" style videos. The company said that its Hyperlapse application would allow mobile users to record extended movies which can then be sped up and shared as fast moving time lapse clips. The app, which operates as a stand- …
Shaun Nichols, 27 Aug 2014

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

HP's axe swings AGAIN: 5,000 more staffers for the chop

Shape-shifting HP is to throw thousands more workers on the employment bonfire to free up cash for R&D and sales investments, the company confirmed as it provided more background on the pending corporate dissection. The Palo Alto titan yesterday went public over plans to divide the business in two, with the PC and printer …
Paul Kunert, 07 Oct 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 …
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 …
Windows XP boot screen

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
Fraud image

Dragons' Den man and co-CEO to work for FREE at loss-making Outsourcery

Outsourcery bosses Piers Linney and Simon Newton are relinquishing their salaries for the next 12 months in a bid to save the loss-making cloudy biz £500,000, the company told the stock market today. The desperate duo’s act is part of measures to find £4.5m in funds to keep the wolves from the door in the medium term, a move …
Paul Kunert, 14 Aug 2014

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

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
Beached whale

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

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
frustration_anger_irritation_annoyance pain

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

Sing it, Systemax: 10 straight quarters plunging in a row, 10 straight quar....

Shape-shifting mega reseller Systemax has finally broken its run of top line wobbles after 10 consecutive quarters but the US titan still couldn't turn a churn out a profit in its calendar Q2. The New York Stock Exchange-listed dealer last night reported low single-digit sales growth of $831.1m, representing a rise of 1.4 per …
Paul Kunert, 30 Jul 2014
Dunce

Read IBM's note to staff announcing mandatory training and 10% pay cut

IBM has instituted a new, mandatory training program for some US employees whom management claims don't measure up in the skills department – and participants will be required to give up 10 per cent of their salaries for the privilege. The program was announced in a memo issued to the affected staffers, all of whom work in the …
Neil McAllister, 17 Sep 2014
SuperTim's bacon bounty sarnie

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
channel_teaser_money_top

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
management management3

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
hand holdin retro telephone

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
Satya Nadella

Microsoft splurges 2½ INSTAGRAMS buying Minecraft maker Mojang

Having closed down its own lesser gaming operations, Microsoft is spending $2.5bn on buying one with a big punch – Minecraft maker Mojang. Loss-making Minecraft will break even in 2015, Microsoft said in a statement. The deal is expected to close late this year. Microsoft is doing more than buying a leading and popular game …
Gavin Clarke, 15 Sep 2014
management management4

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