Results for: Cost-cutting

Intel CEO Pat Gelsinger is set to present a plan to the Intel board, aimed at reviving the company by selling assets and cutting costs. The plan, to be presented at a mid-September meeting, includes potential divestitures of business units like Altera, the programmable chip unit. Intel has enlisted Morgan Stanley and Goldman Sachs to advise on the asset sales, while the plan may also involve halting the $32 billion German factory project. These moves are part of a broader effort to revitalize the struggling chipmaker, facing challenges like weak second-quarter earnings and declining market capitalization.

Meta has decided to discontinue its in-house chip development for its upcoming augmented reality glasses, citing high costs and a shift in business priorities. The company will now rely on third-party chipmakers like Qualcomm for its AR glasses prototypes.

Embracer Group, a major player in the video game industry, has implemented significant cost-cutting measures to improve profitability. This has resulted in layoffs, studio closures, and game cancellations, impacting thousands of employees and projects. This analysis dives into the financial figures and visual representations of these reductions, revealing the scale of the cuts.

Sigma Lithium Corp. announced strong second-quarter earnings, driven by increased lithium sales volume, cost-cutting measures, and a diversified customer base. The company’s focus on operational excellence and premium product quality has resulted in impressive margins and a strong financial position.

Warner Bros. Discovery has shut down the Cartoon Network website as part of a cost-cutting measure and to boost subscriptions for its streaming service Max. The move redirects viewers to Max for access to their favorite shows, emphasizing the growing importance of streaming in the entertainment landscape.

Boots, the high street pharmacy chain, is set to close down more outlets by the end of this summer, continuing its cost-cutting initiatives announced by parent company Walgreens Boots Alliance. This follows a previous plan to shut down 300 UK pharmacies in 2023, aiming for £618 million in savings. While some stores remain open from that initiative, the Pharmaceutical Journal confirmed that additional closures will occur during summer 2024. Although the exact number of stores impacted remains unclear, Walgreens Boots Alliance’s latest quarterly financials indicate a possible closure of ‘up to 650 Boots stores’ across the UK, with 581 already closed by the end of May. Boots UK has clarified that the closures do not involve additional pharmacy shutdowns, aligning with prior plans. Despite the closures, Boots UK’s pharmacy sales saw a 5.8 percent increase compared to the same period in 2023, according to a statement from Walgreens Boots Alliance.

Pfizer reported first-quarter revenue and earnings that beat expectations on Wednesday, driven by strong sales of its non-Covid products and its cost-cutting program. The company raised its full-year profit outlook, forecasting adjusted earnings of $2.15 to $2.35 per share, up from its prior guidance of $2.05 to $2.25 per share. Pfizer remains confident in its business and its ability to reduce costs, aiming to achieve $4 billion in savings by the end of the year. The results reflect Pfizer’s efforts to offset the decline in its Covid-related revenue, which has plunged due to decreased demand and the transition to the commercial market. The company is focusing on treating cancer, including its $43 billion acquisition of Seagen, to drive growth and improve its bottom line.

Amazon reported a solid first quarter, beating expectations on revenue and earnings, driven by its cloud business and disciplined cost management. However, a lower-than-expected outlook tempered the positive sentiment, as investors digested concerns about potential margin pressure in the face of increased investments and a more challenging operating environment.

Finance chiefs in the United States have made cost-cutting their highest priority, according to a recent survey by U.S. Bank. The survey, which polled 2,030 senior finance leaders, found that reducing costs within the finance function and across the entire business are the top two priorities for CFOs. This shift in focus comes amid lingering economic and geopolitical uncertainty, including higher inflation, interest rates, and political unrest. As a result, CFOs are facing immense pressure to make the right technology investments to remain competitive. While layoffs are considered a last resort, nearly half of CFOs are prioritizing investments in technology over job cuts. Artificial intelligence (AI) and data analytics are the top investment priorities for the finance function. Despite the challenges, some companies, such as Meta Platforms, are betting on the long-term benefits of AI spending, particularly in terms of increased engagement and advertising efficiency.

The Dallas Cowboys have exercised the fifth-year option on their star linebacker, Micah Parsons, but with a surprising positional designation as a defensive end. This move saves the team roughly $3 million in salary. Parsons played primarily on the defensive line last season, so the new designation reflects his actual role on the field. While it’s unlikely Parsons will play under his option, it highlights the Cowboys’ strategy of prioritizing top-dollar deals for quarterback Dak Prescott and wide receiver CeeDee Lamb while finding creative ways to manage their salary cap.