#costcutting

The cost cutting and deferred maintenance are starting to show. Many items in campus are just left broken and not being repaired. Pathetic.
Should people be rewarded for saving money at the expense of not maintaining things? In the long run doesn’t this backfire?

Our CEO claims the bank needs to automate routine tasks to save money. But if the goal is truly maximum cost reduction, the math isn't adding up.

• The Worker: Costs a modest salary, generates direct output, and uses AI to get 30% faster.
• The Executive: Costs millions in base pay, multi-million dollar bonuses, massive stock grants, and golden parachutes.

If AI is excellent at synthesizing massive data sets, forecasting market trends, predicting risks, and optimizing resource allocation... isn't that literally the job description of our C-Suite?

And more importantly, is the constant focus on cost reduction the most effective path to growth?

A tireless AI-replaced C-suite could intelligently transition Wells Fargo from a defensive "crisis-management" posture into a growth-oriented, technologically advanced institution with unwavering focus. By pivoting away from the aggressive cost-cutting and East Coast centralization that defined our CEO’s tenure, a new AI leadership could optimize the bank across 3 primary areas that include 1. Aggressive Technical and Digital Modernization 2. Business Diversification and Revenue Growth, and 3. Modernization of Risk and Compliance.

Eliminating the C-Suite introduces truly independent oversight, while removing bias and self-dealing, ethical issues, nepotism, lack of accountability, and stifled innovation due to an outdated old boys club mentality.

If we are truly entering an era of peak efficiency, let’s start at the top of the org chart, not the bottom.

Lisata Therapeutics has significantly reduced its workforce by approximately 72% following the termination of a merger agreement with Kuva Labs. This drastic measure aims to lower operating expenses and conserve cash for the company's strategic future. The biotech is also pursuing legal action against Kuva Labs, alleging a breach of their merger contract. Lisata is seeking damages and a previously agreed-upon termination fee. Some laid-off employees may be rehired as consultants.

Basking Ridge, New Jersey

https://www.biospace.com/job-trends/lisata-axes-72-of-workforce-following-failed-merger-with-kuva

The Walt Disney Company has indicated that further cost-cutting measures are planned. These initiatives are expected to include additional workforce reductions. The company stated it is "mid-stream" in its efforts to reduce expenses. Layoffs are one of several methods being considered to achieve these savings. This follows previous rounds of significant job cuts throughout the year.

Burbank, California

https://www.laughingplace.com/disney-business/disney-layoffs-q3-fy2026-earnings-call/

All you other basins are not long for this company. It’s all about the Benjamins now babay

FedEx is closing hundreds of shipping centers nationwide as part of its Network 2.0 plan. This consolidation effort is expected to eliminate over 200 locations by the end of 2027. The company is also laying off more than 160 workers in New York due to these closures. This contrasts with a significant $18 million expansion of its Memphis hub. FedEx is investing in cost-cutting measures to maintain profitability.

Memphis, Tennessee

https://www.inc.com/amaya-nichole/fedex-closing-shipping-centers-doomed-locations-2026/91381130

I must say.. initially I thought Dan did not have a strategy. But when Board member said he didn't want to get ahead of Dan on strategy it's now obvious.

Dan's strategy is to rebalance expenses and eliminate Han's DEI stink.

How? Appoint Consumer President and Consultants outside of legacy Inept Vz Execs to reset Verizon for aquisition.

There is zero operational/marketing strategies for growrh on purpose.

Buckle up!

People are being cherry-picked from existing teams to form new teams. The decisions are made from the top levels and managers typically don't know what's going to happen. Get ready for another round since IBM bolsters their earnings on cost reduction.

I heard they're tightening the belt and only renewing some contractor positions. From what I've been told, unless you're considered top tier, renewals may not happen.

After the roller coaster of the last several months, this just feels like another blow for contractors.

Anyone else heard something?

Los Angeles Unified School District is projected to face a significant cash shortfall, prompting concerns about its financial stability. The district must revise its fiscal plan within 45 days to avoid increased county oversight. Experts suggest that declining enrollment, expiring COVID-19 relief funds, and rising operational costs are contributing factors. Tough decisions, including potential layoffs, furloughs, and school consolidation, are anticipated. The district is urged to rely on its own cost-cutting measures rather than expecting substantial state aid.

Los Angeles, California

https://edsource.org/2026/lausd-financial-crisis-looms/763170?amp=1

Dell filed w the sec on the amount the layoffs will cost the Company

BLR and Sofia exist because we're cheaper. AI is cheaper so HQ will trim the edges

Major telecommunications companies are implementing significant workforce reductions as a primary cost-cutting strategy. AT&T, Verizon, and O2 Germany have all announced substantial job cuts in the first half of 2026. Nokia is also continuing a large-scale reduction program aimed at substantial annual savings. While these cuts can improve short-term margins, they often fail to address underlying revenue generation issues. The article suggests that true transformation requires redeploying capital into new growth areas, not just reducing expenses.

New York, NY

https://sebastianbarros.substack.com/p/telcos-layoffs-are-just-aspirin

The upstream has been gutted. We are staffed for copy and past Guyana and copy and paste Permian. With the Horizon challenge nothing is copy and paste now. Executives baffled why everything isn’t like Guyana and Permian. Endless effort being expended to hold their hands and explain to them why everything isn’t not as easy as Permian and Guyana. Sadly they aren’t smart enough to understand so just keep yelling at the teams to find a way.

Rising living costs, layoffs at VZI, increasing medical expenses, and growing family responsibilities are making life increasingly challenging , especially in metro cities. Cost-cutting by VZI only adds to the pressure.

Get rid of all the tenured Store Managers and have someone replace them with half the pay.

Below is what GMs do, they dont bring any revenue.

Reviewed sales dashboards that an AI could summarize in five seconds.

Answered repetitive customer questions that a chatbot handles 24/7.

Sent follow-up emails whose content could be generated by AI with remarkably similar enthusiasm.

Scheduled employees using software that already suggests the optimal schedule.

Read reports generated by systems that generate reports about other systems.

Approved routine requests that mostly followed predefined policies.

Held meetings to discuss KPIs that AI had already analyzed.

Repeated corporate announcements after they had already been emailed to everyone.

Escalated unusual situations—the one area where humans still tend to outperform automation.

Provided empathy, judgment, and conflict resolution when customers had complex or emotionally charged issues.

Share price collapsing. The earnings call was all about cost cutting, move to AI. Expect major job cuts.

BP is planning to eliminate approximately 700 non-frontline positions as part of a strategic restructuring. This move aims to simplify operations, reduce costs, and enhance profitability. The majority of these affected roles are office-based or support functions, not those directly involved in production. This workforce reduction aligns with BP's renewed focus on its core oil and gas business. The company is prioritizing efficiency and financial performance in its ongoing turnaround strategy.

London, United Kingdom

https://www.ndtvprofit.com/business/bp-layoffs-oil-major-to-slash-8-of-non-frontline-production-jobs-11844108/amp/1

Centene projects substantial severance costs for the current year, potentially reaching $415 million. This figure includes anticipated spending in the latter half of the year for enterprise optimization efforts. The company has already incurred $50 million in expenses related to a voluntary separation program. Centene currently employs 59,800 individuals. The insurer reported strong net income and revenue for the second quarter.

https://www.benefitspro.com/2026/07/29/centene-projects-up-to-415m-in-severance-costs-this-year/

More revenue declines, Ai talk when will it generate revenue???
But the company is very profitable making 685million. More bullsh-t about cost takeout in GIS. Usual b4llsheet.

Manager was telling team no travel moving forward and to cancel upcoming trips. Anyone else been told this?

How can a company be financially viable when every level of management, which I looked up from a lowly tech to the ceo is 7 levels, which even my 1st level has only 8 employees. Industry standard is 18-25 (even at other industries) it’s the same, and above that 2-7 have 1-3 employees under them! The company cannot be financially responsible with so few reports under each layer, it is irresponsible to allow such a financial travesty to continue! Each layer should have 8-10 reports as a minimum! Go look at other industries including ATT or Frito Lay! Look it up it’s insane, this good ole boy days of butt kissing to get a made up position to check off one box are over, they expect the techs in the field to be super universal techs, then also should all levels of management. Let me clean house and pretend I am Elon Musk!

https://www.outlookbusiness.com/corporate/cognizant-wins-multi-year-centene-deal-that-could-touch-1-billion

I find it very interesting that they are “cutting costs” but just executed a massive contract with an AI company.

So much for transparency 😒

Rumors have spreading for a bit now.
Some people are saying that they are “trimming the fat in SMB”
“shifting more towards a Partner model”
“Micro moving back to TFB”

What’s the word?

Rising fuel costs and global instability are impacting major airlines. Southwest Airlines is considering further job cuts as a potential measure. Meanwhile, American Airlines reported a significant 88% decrease in its quarterly profit. This decline occurred even as American achieved record revenue figures. Both companies are navigating a challenging economic environment.

Dallas, Texas

https://www.bizjournals.com/dallas/news/2026/07/23/american-southwest-airlines-fuel-cost-earnings.html

It’s a spending spree now that the company got more help! Teams traveling the globe and enjoying entertainment and fancy dinners.
Yet-we are in debt and are taking on more debt.
Not to mention the 6 figure work from the coach and pool side positions.

What’s with the reduced spending? Haven’t seen it like since 2000!!!

Spending has been halted. They are looking at every nickel and dime. Is the bank being acquired? I haven’t seen it like this since 2000

Talks of AI token costs vs human labor is picking up steam. Brace yourselves.

Last week, several projects were shelved. Several contractors were terminated/laid off.
Never seen such a velocity with which FIS is doing cost cutting.

Upcoming August lay off is "mother of all layoffs".
Get ready.

Despite a surplus in the last fiscal year, Akron Public Schools is projected to face significant deficits starting this academic year. The district's financial outlook indicates spending will outpace revenue in the coming years. This shift necessitates the consideration of cost-saving measures by the school board. The board is actively deliberating these potential actions to address the looming financial challenges. The future financial stability of the district is a primary concern.

Akron, Ohio

https://www.beaconjournal.com/story/news/education/2026/07/26/akron-school-board-weighs-cost-saving-measures-amid-uncertain-future/91022676007/

You should be thinking like an executive saying to yourself how much can I strip out of this company while contributing as little as possible.

We have too many in-house counsels and law function leaders. I have seen 2-3 in house counsels in some internal meetings. They are tripping over themselves!

The function overall and within business lines has put in place “zipper model” org charts to align with similar hierarchy positions in other functions. This includes 1:1 law-to-business leader relationships. THAT IS NOT NEEDED post 2025!!!!! Other functions have rationalized cost, often serving multiple businesses (what we saw pre-2025). The zipper model is seen not just with the Law org chart, but also on how Law leaders expect to be advised by their senior counsels within a business. They want to be spoon fed, often to participate on an equal footing with other function colleagues.

Also, have you seen how Law function internal approval is sought? Tons of leaders are copied or addressed on emails. These are ornate emails that cut and paste from emails used in the business. It’s a who’s who of the function on these emails.

Law function work appears MOSTLY administrative and coordination in its nature. They are experts in keeping their function leadership aware of issues and managing the real work performed by others, including external counsel.

Can we make real and lasting change here?

Happened earlier in July but apparently was largely overlooked and then quickly buried by AK's pre-emptive stock warning.

https://www.bloomberg.com/news/articles/2026-07-09/starbucks-taps-ai-to-reduce-reliance-on-microsoft-ibm-software

By Daniela Sirtori and Brody Ford |
July 9, 2026 at 5:15 AM CDT
Updated on July 9, 2026 at 8:31 AM CDT

• Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.
• The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News.
• Starbucks spends about $400 million a year on software alone, and building in-house software can be cheaper, an incentive for the company, which is looking to cut costs as part of a broader turnaround effort.

Starbucks Corp. is developing in-house tools with the help of artificial intelligence that could replace some software applications it now buys from companies such as Microsoft Corp. and International Business Machines Corp.

The coffee chain is building alternatives to a Microsoft system that tracks inventory and an IBM tool that manages maintenance, according to an internal presentation reviewed by Bloomberg News. Some of the Starbucks-developed software could roll out by the end of next year, pending the results of testing.

For years, businesses were tethered to their technology vendors due to fear of business disruption and the complexity of building in-house tools. Now AI is shifting that calculus as it makes it easier to develop applications from scratch and as companies push workers to use the technology.

Leading software companies face mounting concerns about whether they’ll be able to fend off competition from products built by upstarts, or their own customers, using AI. This phenomenon has weighed on software stocks this year, with Microsoft and IBM both trailing the S&P 500.

Shares of both companies fell during trading on Thursday, with Microsoft down 2.4% and IBM sinking 5.2% at 9:30 a.m. in New York.

Starbucks spends about $400 million a year on software alone, Chief Technology Officer Anand Varadarajan told workers in an internal forum earlier this year. “There’s clear opportunities to reduce the spend in software,” Varadarajan said, according to a recording of the meeting reviewed by Bloomberg News.

In-house software can be cheaper, an incentive for companies such as Starbucks, which is looking to cut $2 billion in costs as part of a broader turnaround effort. Though in the long run, building can lead a company to pay higher maintenance and labor costs.

When it comes to technology, the company is reviewing “every contract and service,” according to the presentation. In some cases, that includes building products to replace software that its engineers have to heavily tailor anyway.

Starbucks has been working for several years on building a point-of-sale system that would take the place of Oracle Simphony, according to people familiar with the matter who weren’t authorized to speak publicly.

The coffee chain declined to comment. In a blog post earlier this year, the company said AI and other technology advancements will support its long-term growth and free up baristas to focus more on customer service.

Spokespeople for Microsoft, IBM, and Oracle didn’t provide comment.

AI-assisted coding was key to developing the platform that could replace the IBM tool, according to the internal presentation. Starbucks has been pushing tech workers to use artificial intelligence, even factoring usage into their bonuses, Bloomberg News has reported.

There’s skepticism about how much, or how quickly, AI can speed up and automate work. Starbucks recently pulled an AI-powered system to track inventory at stores, reverting to manual counting. It also continues to use software from third-party vendors, including from companies such as Microsoft.

The Starbucks enterprise technology team is on track to reduce its budget by about $30 million in the fiscal year ending in late September, according to the internal presentation. That includes cutting about $10 million in software spending.

Another $13 million will be saved mostly by cutting back on contractors from professional services firms and backfilling some roles with its own staff. Starbucks is setting up offices in Nashville and India that will house some tech workers, while others will remain at its Seattle headquarters. The company has cut about 2,300 jobs since February of last year, including many in tech.

head of growth and generosity leaving company, not being replaced. a bunch of people promoted from VP to SVP. in same email, layoffs announced. said this was done in the name of cost reduction yet with all the big title promotions, were there any real dollars saved? it's so tasteless to be rah rah let's celebrate promotions and then tell people they lost their jobs all in the same day.

Heard that teams are being limited on their AI spend due to extreme costs by some dev groups. Like $100 per month limit is what we were told, but don't know that for sure. Anybody else have more details on this shiz show?

Hahahahaha...AI is so great; let's get rid of people! Oh no, it costs too much; let's limit it but not hire anyone back! Eddie Jones should have just stuck with treating it's underpaid people nicely and letting everybody be happy the way things were before all this reimagined cr@p!

With losing the employee discount it's not worth staying with verizon I need cheap and works most the time.

If you found any deals share I thing everyone would appreciate

A recent analysis reveals that major tech companies like Oracle, Amazon, Cloudflare, and Block have cited artificial intelligence in their layoff announcements. However, the underlying reasons for these workforce reductions differ significantly among them. Some companies are reallocating funds towards AI infrastructure, while others are simplifying organizational structures or undergoing direct AI-driven restructuring. The research suggests that many of these layoffs are preemptive cost-saving measures to finance AI development rather than direct job replacements by automation. This divergence in explanations has implications for how HR communicates these changes to employees and stakeholders.

https://hrexecutive.com/four-big-name-ai-layoffs-four-different-explanations/