Articles about Cost-Cutting

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Job cuts klaxon: SAP axes 2,200 staff, denies 'cost cutting' to blame

Europe’s largest software firm is reportedly cutting up to three per cent of its workforce. SAP’s HR chief Stefan Ries has told Bloomberg the enterprise giant is cutting 2,000 staff. The firm's total headcount is 74,406. Its chief executive Bill McDermott announced its second round of job cuts in less than a year. When …
Gavin Clarke, 06 Mar 2015
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Cost cutting at Arrow ECS as senior accounts bods exit

Arrow ECS is integrating its UK sales desk with the team at Computerlinks, and in the process has decided to trim costs by getting rid of some senior account directors. Sources tell us seven experienced hands including Mark Chippendale - who spent more than a decade covering key accounts - were recently made redundant by the …
Paul Kunert, 09 Apr 2015
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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

+Comment 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
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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

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
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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
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

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
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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 …

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

Samsung and HTC: Gaze upon our EMBIGGENED numbers, pesky analysts

Cost-cutting and better-than-expected mobile shipments helped Samsung Electronics and HTC trash analysts' profit forecasts, according to both firms' unaudited Q1 data. Results from the Korean chaebol took a turn for the worse in 2014 as demand for its smartphones and tabs crashed, causing an inventory pile-up that proved costly …
Simon Rockman, 07 Apr 2015
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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
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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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Former Misco exec rocks up at Tech Data

Vendor vet Gary Withington has landed at distribuor Tech Data months after he was let go by tin peddler Misco as part of a cost purge. The man spent the best part of two decades at Sun Microsystems and Dell in various roles before rocking up as Misco UK MD, a job that lasted for two and a half years until October ’14. He was …
Paul Kunert, 24 Mar 2015

SamSUNK! Korean giant's electronics biz takes punch to the smartphone profits

Samsung's mobile phone businesses took a nasty tumble in 2014's fourth quarter, with profits at the company's electronics division falling by 27 per cent to 5.35 trillion won ($4.9bn). Samsung Electronics makes all manner of gadgetry, much used by other electronics companies in their own products. But attention has focussed on …
Simon Sharwood, 29 Jan 2015

Azlan UK boss made 'redundant' amid restructure

Tech Data (TD) UK has restructured its Azlan enterprise tech business unit, taking out the top dog Gareth Hansford in a cost cutting shimmy. The industry veteran left this month, the start of the distie’s new fiscal year, and the decision to make him redundant came after analysis of the books. Hansford confirmed to The Channel …
Paul Kunert, 25 Feb 2015
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

Juniper okays Elliott Management's board nominees

Juniper Networks and activist investor Elliott Management are fluttering the “peace in our time” paper, with the network ironmonger agreeing to appoint two new Elliot-approved directors to its board. The deal will hopefully give the company some respite from a year of corporate turbulence that saw the appointment and axing of a …
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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
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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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IBM buys 'deep learning' upstart Alchemy API, inhales 40,000 devs

Big Blue has taken a break from its busy axe wielding cost-cutting schedule to buy startup AlchemyAPI and insert 40,000 developers into its "community". Deep learning upstart Alchemy API collects, sifts through and analyses unstructured text and data. According to Big Blue, the acquisition will boost IBM's "Watson ecosystem". …
Kat Hall, 04 Mar 2015
Boring Christmas

Happy Holidays! Misco axes ONE IN FIVE UK sales peeps: sources

Shape shifting Misco spread the cheer among its workforce in the run-up to Christmas by distributing P45s, with sources estimating that up to 20 per cent of UK sales heads rolled. The parent of the web tech bazaar, Systemax, which is trying to deal more with mid-market corporate enterprises and sell services, is cutting costs …
Paul Kunert, 09 Jan 2015
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Deutsche Bank pens cloudy infrastructure deal with HP

Fat outsourcing contracts are relatively few and far between these days, so HP’s 10-year, multi-billion dollar global win with Deutsche Bank is a welcome shot in the arm for its declining Enterprise Services division. The deal was signed before Chrimbo – we asked HP for comment at the time but it refused to talk – but it went …
Paul Kunert, 24 Feb 2015
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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
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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

BOFH: Mmm, gotta love me some fresh BYOD dog roll

Episode 3 "Oh, Bring Your Own DEVICE!" the PFY blurts in mock realisation. "Of course Device!" the Boss snaps "What did you think it meant?!" "Bring Your Own DRINK" I say, nudging a half consumed case of chilled Newky Browns from under the desk that the PFY and I have been working on for the past half hour. "Bring Your Own Dog," the …
Simon Travaglia, 20 Mar 2015
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
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Ericsson buys Sunrise Technology

Ericsson, which has just laid off 2,200 people Sweden and which plans more cost cutting around the world has already started spending the savings by buying the IT business services part of Chinese outfit Sunrise Technology. The transaction means Ericsson will take on 1,000 employees at the Guangzhou-based IT services provider, …
Simon Rockman, 17 Mar 2015

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
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'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
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

Gartner to CIOs: Go on, SPEND some CASH on ROBOTS 'n' 'Things'

CIOs in the UK and Ireland are bullish on “digitalisation” of their businesses as spending returns. That’s according to Gartner, who ranked so-called digitalisation third in the list of CIO’s spending priorities in the UK and Ireland. It’s up from sixth place the year before, and a bigger priority here in the UK than for CIOs …
Gavin Clarke, 17 Feb 2015

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

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 …
Angry woman on mobile

Listen up, AT&T, this could be YOU NEXT: $40m sting for throttling 'unlimited' mobile data

The FTC has reached a settlement with TracFone in what could be the first of many refunds for screwed-over customers with so-called unlimited data plans. The US regulator said the cell network must pay back $40m to customers who used its prepaid unlimited data plan and found their connections deliberately strangled, stretching …
Shaun Nichols, 28 Jan 2015
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Systemax CEO closes 31 retail stores in US as losses widen

Systemax has finally shuttered the majority of its consumer tech stores in North America after once again enduring weak holiday season sales and reporting yet another year of losses. The New York-listed reseller grew consolidated sales 4.4 per cent to $912.9m but it was the B2B side of the house and not retail that contributed …
Paul Kunert, 11 Mar 2015
Cabinet Office minister Francis Maude against bakdrop of '70s stone facade with old axes hung up on wall (background by Michael Coghlan, licensed under CC 2.0

Mad Frankie Maude hangs up his axe

Axe-wielder-in-chief and Cabinet Office minister Francis Maude is to hang up his blade after the next election. Since first swinging into power in 2010 Maude has pledged war on the supplier "oligopoly", which have traditionally dominated Whitehall IT spend, placed a moratorium on IT contracts over £100m, overseen the creation of …
Kat Hall, 02 Feb 2015
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Did we just wake up in an alternate universe? BlackBerry turns a profit

BlackBerry actually made money in the fourth quarter of its fiscal 2015, but the bigger picture for the ailing smartphone maker is far from rosy. The Canadian firm reported net income of $28m for the three months ending on February 28, compared to a loss of $423m for the same period a year ago. As a result, it was able to post …
Neil McAllister, 27 Mar 2015
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

Micro Focus guillotine will fall more frequently on Novell necks

Novell seems to be bearing the brunt of the mammoth restructuring that parent company Micro Focus is currently executing, say our sources close to the situation. This week, Micro Focus issued a profit warning based on the strengthening dollar and went public on a review of the group – trading brands include The Attachmate Group …
Paul Kunert, 10 Apr 2015

Avnet sales slip but EMEA operation's off the hook - for now

Avnet Technology Solutions is on the slide again as its sales and operating profit went south in Q2 fiscal ’15. The distie’s latest president has clearly got his work cut out to turn in consistent and sustainable growth. The enterprise tech wing of Avnet Inc today reported financials for the three months ended 27 December. …
Paul Kunert, 22 Jan 2015
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
The Register breaking news

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

Exclusive 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 …
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
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'We're having panic attacks' ... Sony staff and families now threatened in emails

Sources within Sony Pictures have told The Register that employees received bizarre emails on Friday threatening them and their families if they don't take the side of hackers who raided the firm's corporate servers. The hackers, working under the moniker Guardians of Peace or GOP, have spent the past week dumping onto file- …
Iain Thomson, 06 Dec 2014
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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
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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