Articles about Cost-Cutting

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BA 'offers' IT bods extra leave, flexible working - unpaid of course

British Airways bosses were this week told to ask staff to "volunteer" to take unpaid leave, as the sorry cost cutting saga enveloping British Airways rumbled on. This includes all BA employees, not just the fleet of techies working at the company, and is in addition to redundancies already confirmed in the last month. “As we …
Paul Kunert, 27 Jun 2016
Girl and computer, photo via Shutterstock

UK's education system blamed for IT jobs going to non-Brits

Immigration is an issue swaying electorates around the world, including Britons, who will next week decide whether to leave the European Union and Americans, who will soon decide whether to vote for Donald Trump as president in November. While this is generally assumed to affect low-pay, low-skilled jobs, it can affect those in …
SA Mathieson, 17 Jun 2016
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

Not just the proles getting the heave-ho as British Airways races to save millions

More details have surfaced about the British Airways job axe hovering above the app delivery team, with project managers and business analysts - not just techies - also at risk of redundancy. As revealed by El Reg yesterday, BA warned 200 of 424 people in its software unit they could lose their job by December as part of cost …
Paul Kunert, 14 Jun 2016
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

British Airways slaps 'at risk' sticker on nearly half its app delivery dept

Almost half the application delivery techies at British Airways (BA) might be pushed out of the company in December under redundancy plans outlined to staff. The airline is in cost-cutting mode, and the GMB union warned in February that BA was considering outsourcing and offshoring IT to Indian titan Tata Consultancy Services …
Paul Kunert, 13 Jun 2016
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

HPE is still swinging the layoffs axe: 500 more services folk get chop

Another quarter and another round of people are being crammed into Hewlett Packard Enterprise Services’ employment cannon – 500 poor souls in the UK and Ireland have been told to stand in line. As revealed by El Reg some months ago, HPE’s Enterprise Services (ES) division – the one being merged with CSC – put nearly 1,100 …
Paul Kunert, 02 Jun 2016
HP CEO Meg Whitman

Whitman deletes another chapter in HP history as CSC and ES borg

Hewlett Packard Enterprise CEO Meg Whitman is dismantling another legacy bequeathed to her by a predecessor as she waves goodbye to Enterprise Services. The first lady of Palo Alto has already closed the chapter opened by one-time CEO Carly Fiorina who had signed off the buy of Compaq, only for HP's PC business to be ejected …
Paul Kunert, 26 May 2016
Man exasperated after being on hold for a long period of time. Photo by Shutterstock

Geniuses at HMRC sack too many staff! Nope, can't do it online. FAIL

HMRC was too hasty to cut staff before expected cost savings from a shift to digital materialised – something that should act as a cautionary tale for its current "digitisation" plans, the National Audit Office has warned. Between 2010/11 and 2014/15, HMRC cut staff in its personal tax department from 26,000 to 15,000. But …
Kat Hall, 25 May 2016
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

CSC grabs pistol, plays employment paintball with P45s

Wimbledon is around the corner, the hippies are getting ready for Glasto and sickly integrator CSC is cutting jobs again - the summer season is upon us. Almost like clockwork, the US-headquartered company has again kicked off yet another redundancy programme - it ran one in June last year and one in May 2014. In a memo to the …
Paul Kunert, 17 May 2016

HSBC swinging axe on UK IT department, 840 heads to roll

HSBC is to wipe out more than 800 of its UK-based techies in a move Unite the union has condemned as a ‘reckless’ drive to offshore jobs. The redundancies are part a wider cost cutting drive that will see the bank slash 8,000 positions in Blighty and a total of 50,000 worldwide by the end of next year, with the aim of saving $ …
Kat Hall, 16 May 2016
Titanic sinking

Symantec: I know we said things'd get better when we sold Veritas...

Symantec is slipping back into cost-cutting mode just months after the split with storage arm Veritas was supposed to provide the healing balm the business so clearly needed. The standalone security biz wants to carve out savings of $400m via an “efficiency programme” that includes “eliminating stranded costs” from the sale of …
Paul Kunert, 13 May 2016
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Avnet checks legacy data kit sales stats, panics

Enterprise tech distie Avnet Technology Solutions is back in cost cutting mode amid fears that flakey demand for “legacy” tech will continue. The firm reported an 8.3 per cent decline in sales of $2.13bn for Q3 of fiscal ’16 ended 2 April, this was down 6.9 per cent in constant currency. The top line was at the “low-end of …
Paul Kunert, 29 Apr 2016
K2

Dell looking at higher debt mountain to buy EMC

Dell is facing its EMC acquisition debt mountain growing yet higher because the Wall St bond market will need higher interest payments to fund the deal. That could highlight product overlap costs to ex-money man David Goulden who will run the new Enterprise Systems Group, covering its servers, storage, networking, converged …
Chris Mellor, 22 Apr 2016
 Putting text-reading robots to work. Arthur_Caranta, CC BY-SA

Global IT spend sags

The worldwide IT market will fall 0.5 per cent in value in 2016 to $3.49tn, according to revised Gartner figures. The market watcher had previously forecasted 0.5 per cent rise in the year, but currency fluctuation put paid to that earlier notion. Optimisation as opposed to big cost-cutting is the key IT spending theme "As an …
Drew Cullen, 07 Apr 2016

Apple iPhone GPU designers Imagination axes 20 per cent of staff

Brit chip design house Imagination Technologies will shed a fifth of its workforce in a £27.5m ($40m) cost-cutting spree. The Hertfordshire-based biz said on Thursday it will lay off about 200 people in addition to the 150 it said in February it would make redundant. That adds up to 350 or 20 per cent of its 1,700 headcount …
Chris Williams, 17 Mar 2016
A large hand flicks an icon of a little red man. Image via shutterstock (Lasse Kristensen)

Eight in ten IBM Global Tech Services roles will be offshore by 2017

Exclusive Just 20 per cent of IBM’s Global Technology Services workforce in mature economies could remain under offshoring and near-shoring plans set out by the company’s top brass, The Register can exclusively reveal. Big Blue last month embarked on a cost-cutting exercise in the UK, putting 1,352 staff on a 45-day notice period to “ …
Paul Kunert, 07 Mar 2016

Activist investor tells dot-word biz to sell off 'garbage' new domains

One of the biggest names in the domain name market, Rightside, has been hit with a broadside from an activist investor. J Carlo Cannell, who owns 7 per cent of the public company through his Cannell Capital company, filed an extraordinary and at times abusive letter with the SEC in which he outlined his frustration with the …
Kieren McCarthy, 02 Mar 2016

NetApp to chop 1,450 staffers from payroll, reveals revenue stumble

NetApp earned profits of $153m in its latest quarter, good, but revenues of only $1.39bn, bad; its mid-point estimate a quarter ago was $1.45bn, making it quite an undershoot. The $1.39bn in its third fiscal 2016 quarter, ended January 29, compares to $1,54bn a year ago, a 9.7 per cent fall, and $1.45bn in its second 2016 …
Chris Mellor, 18 Feb 2016
Calgary_Stampede

Big hybrid iron swinger Infinidat bigs up its own growth

Infinidat, Moshe Yanai’s attempt to re-invent monolithic arrays in hybrid array, super-reliable form, had a good final 2015 quarter and wants everyone to know it's growing while competitors are lagging. To put this in context, in the third quarter of 2015 Infinidat had 61 per cent quarter-over-quarter growth and a 255 per cent …
Chris Mellor, 08 Feb 2016
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CSC boss Gossain is now an ex-exec

CSC UK chief Sanjiv Gossain has joined the not-so-selective club of ex-execs, leaving the ailing integrator less than two years into his tenure. In a wonderful blurt of business-speak, CSC sent us a statement on his departure, confirming Gossain is leaving to “pursue other opportunities as he transitions to the next chapter of …
Paul Kunert, 01 Feb 2016
Sad man stares glumly over boxed contents of desk. Image via shutterstock (Baranq)

Hewlett Packard Enterprise axing services techies again

Hewlett Packard Enterprise is ditching techies at its Lytham site who provide infrastructure services for public sector clients, including the Department for Work & Pensions. According to the Public & Commercial Services (PCS) union, HPE has put 166 employees in the infrastructure technology outsourcing business at risk of …
Paul Kunert, 28 Jan 2016
Files in manager's desk drawers: manila folder marked "Redundancies". Image via shutterstock

VMware to 'axe 900 jobs'

VMware is mimicking cost-cutting actions at alpha shareholder EMC by pushing through its own job cull: 900 roles, to be specific, or some five per cent of the 18k-strong global workforce. The axe is being shined by Virtzilla, reportedly to counter a weaker sales pipeline and share price drop. Let’s face it, nothing gets …
Paul Kunert, 25 Jan 2016
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Unify leashes direct sales reps as it cozies up to channel types

Unify – formerly Siemens Enterprise Comms – is prepping "Rules of Engagement" to govern the behaviour of its direct sales reps as it relies more on channel types to make a living. The Siemens and Gores Group-owned firm, currently being offloaded to Atos in a sale process expected to close this quarter, has hired ex-Avaya exec …
Paul Kunert, 11 Jan 2016
The Register Roundtable Room at The Soho Hotel

CIOs, what does your nightmare before Christmas look like?

CIO Manifesto We gathered 14 of the UK’s finest IT leaders in a secure bunker (elegant room in the Soho Hotel -Ed.) for the last Register Round Table of 2015 to hear their tales of when good IT goes bad. The short version is the thing they fear most is you, dear reader, your screw-ups, your documentation, your thefts, your dodgy code, your …
Joe Fay, 22 Dec 2015
Toshiba

Toshiba denies NAND exit report with 'no decision made' comment

Giant Japanese conglomerate Toshiba, currently restructuring in the wake of a huge accounting scandal, has denied media reports that it intends to pursue a flash foundry spin-off. The Japan Times has reported (citing sources) that the flash foundry business could be set up as a separate subsidiary owning the Yokkaichi plant in …
Chris Mellor, 21 Dec 2015

I can turn Yahoo! around claims hedge fund manager

An "activist investor" has sent a 99-page hate letter to Yahoo! CEO Marissa Mayer arguing for her ousting and outlining a range of changes that would boost the troubled company's share price by $30 a share. Despite five CEOs over ten years having tried and failed to turn the one-time online giant Yahoo! around, the head of New …
Kieren McCarthy, 14 Dec 2015

Samsung shoves IT arm into connected cars, hires new hands

South Korean conglomerate Samsung is setting up new organisations including a car tech component team, and rejigging some of the leadership as the company prepares for winter in tech land. The annual structural re-org this time around is to “pre-emptively respond to business uncertainties”, the company stated. The fundamental …
Paul Kunert, 10 Dec 2015

Scandal-hit Toshiba faces investor sueball over accounting woes

Ailing Japanese corporation Toshiba is the target of a lawsuit from embittered shareholders over the stock price crash that resulted from a multi-billion dollar accounting debacle. Some fifty individuals have sued the organisation as well as with three former CEOs and two ex-CFOs for 301.99 million yen (£1.62m) in damages, …
Paul Kunert, 07 Dec 2015

European Patent Office fires up lawyers over claims of cosy love-in with Microsoft

Analysis The European Patent Office (EPO) has fired off legal threats amid allegations the agency has too close a relationship with Microsoft. The claim that the software giant was unfairly getting preferential treatment for its patent applications was first made by Roy Schestowitz on his long-running Techrights site. Schestowitz …
Kieren McCarthy, 30 Nov 2015

NHS IT must spend a fortune to save a fortune, says McKinsey

The NHS must bolster its IT budget by up to £8.3bn over the next five years – in order to produce savings of possibly £13.7bn, said the management consultancy McKinsey. Get this right and the prize is huge; the £30bn NHS funding shortfall – estimated at £30bn by 2020-21 – could be cut by a quarter. But, get it wrong ... The …
Drew Cullen, 10 Nov 2015
British Transport Police cop. Pic: Gordon Joly

Cops' IT too complex for quick and dirty revamp – Police ICT boss

Coppers' IT is so complex and varied across the 43 different forces, a complete "big bang" overhaul of systems to force consolidation is not practical - the head of the Police ICT company Martin Wyke has said. Speaking to The Register, Wyke said that due to the varying IT arrangements and outsourcing contracts across the …
Kat Hall, 05 Nov 2015

Extra week of sales in Avnet's Q1? That's good, says CEO

An extra seven days of sales in Avnet Technology Solutions' latest full quarterly numbers added some much needed top line meat, cut from demand for networking, storage, security and services. In the enterprise distie's Q1 of fiscal '16, for the 53 weeks ended 3 October, revenue went up 1.3 per cent to $2.498bn, including $225m …
Paul Kunert, 29 Oct 2015

Would Dutch T-Mobile sale open door for Deutsche to buy KPN?

A simple statement this week leaked to Bloomberg that T-Mobile Netherlands is about to be put up for sale, uncovers a wealth of potential intent from all quarters. Immediately everyone is guessing who might buy it; our question is what does this allow to happen after that sale has gone through? We have often given the opinion …
Faultline, 26 Oct 2015
HMRC photo, Gov.uk

HMRC U-turns on VAT rules for cloud

HMRC has U-turned on its proposals to hand out VAT refunds just for large system integrators, while forcing public sector bodies purchasing off-the-shelf "cloud" services to pay the full whack. Last year the body published guidelines that would effectively penalise public sector organisations for buying cheap, standardised off …
Kat Hall, 16 Oct 2015
Rabbits_and_tortoise

What next for the DellEMC behemoth as sales slowdown looms?

Comment Michael Dell gets EMC in the bag, short of any go-shop competition, and the dust is settling ... revealing massive product overlaps and potential winners and losers amongst them. Front and centre must be Dell’s two SAN arrays, the SC (Compellent) and PS (EqualLogic) products, facing EMC's popular VNX unified file and block …
Chris Mellor, 13 Oct 2015
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Interoute slips ring on cloudy hosting rival Easynet

Euro-bit-barn-operator-cum-cloud-hosting-provider Interoute is to wolf down pan-regional managed services outfit Easynet for £402m, including debts. The transaction, which is subject to certain closing conditions, is all about cross-selling products and services to the firms’ respective bases of enterprise, public sector and …
Paul Kunert, 08 Sep 2015
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CSC beefs up public sector biz with $390m merger deal

Soon-to-be split CSC is merging its government services biz with US public sector IT outfit SRA for $390m (£254m). The acquisition will add around $1.4bn (£911m) in revenue and 5,000 staff to CSC's public-sector outfit, creating combined annual sales of $5.5bn (£3.6bn) and a workforce of nearly 19,000 employees. Mike Lawrie, …
Kat Hall, 01 Sep 2015
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MoD gets green light to splash £7.8m on Oracle licences

The Ministry of Defence was given the green light to splash £7.8m on Oracle licences this year, according to official gov info. According to the department's ICT exemption data for the first three months of 2015, the deal was given spending approval by the Cabinet Office, which has to rubber stamp all IT spend over £5m. The …
Kat Hall, 01 Sep 2015

Who should be responsible for IT security?

Typically, when a cybersecurity problem arises, it’s the IT department that gets it in the neck. Ostensibly, that makes sense. After all, if someone is in your network mining your database for corporate secrets, it’s hardly the office manager or the accounts receivable department’s lookout, right? Perhaps. On the other hand, …
Danny Bradbury, 18 Aug 2015

Outsourcing tanker CSC sales growth torpedoed

Leaky outsourcing tanker CSC saw sales growth drift off on the horizon for yet another quarter – the first of its fiscal 2016 – but the services slinger is back in the black, without the help of tax benefits. The fact CSC slashed costs and expenses by nearly half a billion dollars had nothing to do with bottom line beefiness, …
Paul Kunert, 12 Aug 2015
Walkie Talkie photo: Malcolm Chapman/Shutterstock.com

RSA chief uncans insurance giant's mega IT infrastructure review

Interview Zurich Insurance, Europe’s third-largest insurer with $70bn in revenue and 55,000 staff, hinted last week that it might buy RSA Group. Yet six major acts of M&A have saddled RSA with 15 data centres, managed and run differently and propping up a creaking architecture. Worth £4.5bn and with 19,000 staff and 20 million customers …
Gavin Clarke, 10 Aug 2015

Avnet TS bemoans slow PC sales and currency for Q4 shrinkage

Avnet Technology Solutions reported a near double-digit decline in revenues to close off Q4, despite selling roughly as many enterprise tech products as it did in the same period a year ago. A financially flattish quarter turned into a declining one, in part when local coinage was converted back into a strong dollar, but …
Paul Kunert, 06 Aug 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
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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
willy wonka oompa loompa

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

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
Scotty - Star Trek

I cannae dae it, cap'n! Why I had to quit the madness of frontline IT

Sysadmin blog It took a massive hack attack against the United States government resulting in the theft of up to 14 million 21.5 million records to make me realise why I want to quit working in IT. Over the past year I've significantly drawn down my involvement in day-to-day IT operations, and I'm much happier for it. The US Office of …
Trevor Pott, 09 Jul 2015
Huawei P8

China's best phone yet: Huawei P8 5.2-inch money-saving Android smartie

Review Huawei’s P8 has finally rolled into UK shops, the latest wave of China’s assault on Tier One Android flagships. Huawei P8 Huawei's P8: set to give South Korean phone makers sleepless nights If you don’t know the Huawei proposition, here it is. You won’t get all the bells and whistles from a phone that arrives on a £40-£50 …
Andrew Orlowski, 29 Jun 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
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

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