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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AMD CEO: We're jumping back into cost-cutting mode

AMD has confirmed it is slipping back into cost-cutting mode after its annus horribilis, caused by tanking demand for consumer PCs in a quarter described by CEO Lisa Su as the “revenue trough” for 2015. As the headline figures revealed last night, there was little to cheer up AMD or investors; revenue dropped eight per cent …
Paul Kunert, 17 Jul 2015
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HP: you know we said we were done with cost cutting...

Just when the folk at HP Enterprise Services thought the multi-year cost cutting timetable was almost at an end, along comes another plan to lop $2bn off the expenses bill. The division reported a 16 per cent drop in turnover to $4.81bn in HP’s second quarter of fiscal ’15 ended 30 April, although profit before tax went up 31 …
Paul Kunert, 24 May 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
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

BlackBerry: We ARE cutting jobs AGAIN

Blackberry is to axe workers across its loss-making hardware division to lighten overheads, the ailing Canadian smartphone maker has confirmed. The company temporarily broke into the black during Q4 of fiscal ’15 ended February, but this short run of fortune couldn’t mask the wider malaise and yet another year of losses. CEO …
Paul Kunert, 24 May 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
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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
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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

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
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
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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

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
Parachutists and cloud image via Shutterstock

Dancing in the fluffy white stuff ain't helping SAP's bottom line

Rampant cloud growth struggled to offset falling profits for SAP, Europe’s largest software company, during the firm’s second quarter. Post-tax profits tumbled 16 per cent to 469m euro ($508.2m) while total revenue increased by a fifth, to 4.9bn euro ($5.3bn) for SAP’s three months to June 30, 2015. Earnings per share fell 16 …
Gavin Clarke, 21 Jul 2015

Foxconn to hire a million Indian staff in major base shift

Apple manufacturer Foxconn reckons it will create one million jobs in India by 2020 – nearly the entire number of its current Chinese workforce – according to reports. Hon Hai otherwise known in the West as Foxconn, last month revealed it was setting its sights on India due to increasing wage costs in China. The firm has not …
Kat Hall, 13 Jul 2015
Woman packs up contents of desk. Image via shutterstock

NetApp consciously uncouples from 500+ staff

We're hearing NetApp has laid-off up to 512 staff world-wide in a cost-cutting exercise before its full-year results come out later today. There are reports that some 200 staff are going from its Research Triangle Park facility in North Carolina. WRAL TechWire says 15 per cent of the RTP facility have received pink slips, …
Chris Mellor, 20 May 2015
Railway line split. Pic: Ian Sane

Splitters! CSC to break itself into pieces following job cull

The break-up craze among the largest tech vendors may have reached the channel, with talk that CSC will separate its North America government unit from the rest of the private-sector sales organisation. The split could come as early as next week, according to Reuters, when the loss-making company takes the covers off its latest …
Paul Kunert, 15 May 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
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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
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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-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

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
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Peak Google? Chocolate Factory cuts costs amid dwindling growth

Google is curbing staff recruitment and introducing a number of penny-pinching efficiency practices to try and gets its profit growth back on track, according to reports. A number of recruiters, venture capitalists and employees told the Wall Street Journal the Chocolate Factory is casting an increasingly critical eye over its …
Kat Hall, 14 Jul 2015

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 …
BT Openreach van

'Tough' UK public sector blamed in BT sales hiccup

Sales dropped 2 per cent to £17.85bn for telco giant BT's full-year results announced today, while profits increased 12 per cent to £3.17bn compared with the previous year. The company primarily blamed its drop in sales on the foreign exchange market, while attributing the profit boost to an efficiency and cost-cutting programme …
Kat Hall, 07 May 2015
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

CSC insiders: 800 job cuts will hit service delivery for punters

CSC is pressing ahead with plans to axe hundreds of workers, brushing aside concerns from some employees that customers are already feeling the pinch of past cost cutting actions. In what has become an annual ritual for CSC, almost 800 employees were put at risk of redundancy in May, with their roles earmarked to be sent to …
Paul Kunert, 23 Jun 2015

Georgens out at NetApp – new chairman, interim CEO named

Longtime NetApp executive Tom Georgens has parted ways with the storage outfit, vacating his dual roles as the firm's chairman and chief executive, effective immediately. Stepping up to the CEO chair – at least temporarily – is George Kurian, who most recently had served as the firm's executive veep of product operations. …
Neil McAllister, 01 Jun 2015
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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
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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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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
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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
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
Apple iMac 27-in WRD mid-2015

What an eyeful: Apple's cut price 27in iMac with Retina Display

Review The last time Apple released a ‘more affordable’ iMac it turned out to be a damp squib of a thing that fully merited the oft-hurled criticism about Apple kit being over-priced and under-powered. I was, therefore, a bit worried when Apple announced a less expensive version of the 27-inch iMac With Retina 5K Display. Apple iMac …
Stephen Dean, 03 Jun 2015

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
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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
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

Unite: CSC using staffers' profitability to shape the future

The Unite union reckons some of CSC’s highest-paid Brit staff could be headed for the chopping block in the company's latest job purge, as it enters consultation with local management. The beleaguered integrator is bundling 800 workers out of the door to cut costs, with a proportion of those roles to be off- and near-shored, El …
Paul Kunert, 18 May 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
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 …

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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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
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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

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 …