#costcutting

At the current scale, multiple layers of management are not required. For teams of approximately 50 employees, one manager is sufficient to ensure effective supervision and decision-making. Maintaining additional management layers leads to unnecessary overhead and increased costs without proportional value.

No. I won’t be going skiing. I will be at home, on the couch watching YouTube Tube or cutting the grass. Or some other low cost activity. Or sitting around thinking and planning how to increase my income.

They just did it again last week but a smaller round and called it “cost cutting”. They just can’t help themselves. Post if you know more

After all the talk of AI, re-orgs, non performant BUs the time for talking will end next week.
Hearing Collab is heading for a 20% haircut which is long overdue. Will be targeted mostly at high cost locations.

Due to principles in Semiconductor manufacturing and moores law, GFs products will enter the low cost semiconductor market within 36 months.
SiPho isn’t capturing as much market demand as previous anticipated, and GaN is somewhat niche. Larger scale (7+nM) technologies will become cheap, consumer scale electronics that mostly any foundry in the world will be able to successfully manufacture. GF will scrape along for some time, missing Quarterly targets here, laying off staff there, cutting cost all the way as they try to keep investors and BoD happy. When NYS incentives run out, GF will consider being acquired by other manufacturers. My bet would be TSMC as they continue US expansion, with some potential for Intel as well. Only hurdle is US administration woes, however, GF is not an American company. This is furthermore complicated by massive deficits in skilled labor, prevalence of AI, and opportunities for robotic automation that will present themselves over the next 36 months.
Any employees considering this as FUD, ask yourself, where do you see GF in 5 years? Are things feeling concrete? Or do you feel some ripples in the water.
Costs of production are going up, which always results in profits going down, especially when producing antiquated tech.

Reading the investors call transcript.

The CFO said the plan is going as expected and that the company should save around $490–$550 million.

What that actually means. When this plan was talked about before (back in May 2025), it was tied to cutting about 1,600 jobs worldwide. Those savings are still being worked through now.

The “one-third” comment, the CFO also said they expect to see about a third of those savings this year. That suggests the cost-cutting and likely the job cuts linked to it is still ongoing, not something that’s already finished.

So expect more layoffs soon.

If you are an hourly lead, key holder, counter manager, associate —-it is illegal and against wage and hour laws to have you on call because of systemic reduced staffing and budget cuts. It is not a requirement to answer your phone or a text on an off day if you are hourly, belk cannot reduce your hours for failure to respond to a call or a text on an off day, that is flagrant violation of wage and hour laws. If you are an hourly lead or key holder, you are under the same laws and guidelines as all other hourly employees . Only salaried managers are required to respond to store emergency situations (alarms, key holder call outs, ect). belk is increasing their demand on hourly employees was tasks that are specifically designated to salaried managers, this is a strategic but illegal way for belk to cut costs.

I've heard rumbling that the superhero event will be canceled this year. I have to say I have mixed feelings about it. While , it's great for those who are recognized, I'm sure it cost millions of dollars to throw a party for the few hundred people who get to go. Could jobs be saved instead?

By constantly cutting and piling on work, they're ensuring the employees left behind will have nothing left to give. That lack of engagement and energy will directly hurt the bottom line in the long run. They're trading tomorrow's success for today's spreadsheet. We're being run by id--ts.

Many are wondering why the company layoffs are being done incrementally and not all at once or in large batch mode. The answer lies in the incentives the bank receives to operate this way. Let me explain.

What Is SUI?
State Unemployment Insurance (SUI) is a tax employers pay to fund unemployment benefits for workers who lose their jobs through no fault of their own. Every employer pays it — but not at the same rate.

Why the Rate Changes
States use an experience rating system.
This means your employer’s tax rate goes up or down based on how many former employees file unemployment claims.

• More layoffs → more unemployment claims → higher SUI tax rate.
• Fewer layoffs → fewer claims → lower SUI tax rate.

The rate can vary dramatically. In some states, employers with few layoffs pay almost nothing, while employers with heavy layoffs pay 10x or more.

How Layoffs Trigger Higher Costs

When a company lays off employees:

• Those employees file for unemployment.
• The state attributes those claims to the employer.
• The employer’s SUI tax rate increases for the next year (or several years).
• The company pays more per employee going forward.

For large employers, this can mean millions of dollars in additional annual taxes.

Why Companies Try to Avoid “Layoffs”

Because layoffs increase their tax rate, companies have a financial incentive to avoid anything that triggers an unemployment claim. This is why employees often see:

• Sudden performance downgrades
• “Voluntary resignation” pressure
• PIPs used as exit ramps
• RTO mandates that force attrition
• Location changes employees can’t meet
• “Resign or be terminated” conversations
• Severance tied to waiving unemployment claims

These tactics shift the separation from employer‑initiated to employee‑initiated, which avoids unemployment claims and keeps the SUI tax rate low.

Why This Matters
Understanding this system helps employees recognize:

• Why companies push resignations over layoffs
• Why performance ratings suddenly change
• Why severance may be tied to waiving unemployment
• Why “restructuring” is framed as “performance management”
• Why attrition‑by‑policy is cheaper than layoffs

This isn’t about conspiracy — it’s about incentives.
And incentives shape behavior that drives our illustrious culture.

Am I imagining this? Has the cost of eating the cafe gone up dramatically over the last year or so? It seems like my same lunch used to cost around 650-750 is now 10.50. I think the firm used to subsidize the cafe to keep the cost down. Wondering if they took away the subsidy as part of the cost cutting or to pay for the overly lavish Trailblazer cafe.

How do you reduce costs to raise your stock price - layoffs! Strap in.

Leadership seems he-l-bent on cost-cutting. But there's always a breaking point.

Instead of laying off employees, organizations should evaluate management layers more carefully. Many manager-level roles come with high salaries but limited hands-on AI or technical expertise. As companies shift toward AI-driven work, it makes sense to prioritize retaining employees who actively learn, adapt, and contribute directly to delivery. Reducing unnecessary management layers can control costs while empowering skilled teams to move faster and innovate.

Today’s layoffs were brutal and inhumane. Lost really good friends and colleagues. Entire teams were wipe down in the name of cost cutting where CEO is going to enjoy millions in bonus and salary hike.😔

During the earnings call, Dan & company stated that they will reduce OpEx by $5 Billion in 2026 (including the 2025 layoffs).

Let’s say laying off 13,000 employees saves $2 billion a year. Where will the remaining $3 billion come from?

In the past month, I visited two leading microbiology labs in top U.S. hospitals. One lab had nearly 80 people performing the same task; the other had just five! Why don’t labs just start understaffing like we do! Need more yachts.

Expense management to priority #3, does this mean we are done with cost focused layoffs?!

And noncore areas that are not aligned to growth, including legacy areas are being significantly reduced and/or eliminated and that includes areas such as business wireline, nondirectional products, technology as well, wholesale, legacy copper and voice platforms and even projects with too long of a payback. So the team has done a great job in finding unit cost efficiency as we build both in wireless and in fiber, cost for prem pass, et cetera. So there's a lot of good work being there, and that helps us get to a lower CapEx envelope, but we're very focused on being very efficient with our capital deployment this year

They know how to squeeze the last bit of blood out of the employees. The company is making $650million cash profit but they plead poverty and won't pay the employees. Execs take millions for themselves and on top they are using the profits cash buying a third of the company by share buybacks. Drums package suddenly goes from $6.7 million to $10million effectively back door. They squeeze every $ they can from employees. Its plundering every which way they can.

It took a while. The financial turmoil is going to reveal a lot about a decade of corporate failure to strategize. I suspect we'll also discover that discarding human capital, treating people as a low-value input, has always been the stupidest mistake, driven entirely by short-term greed. A textbook example of cutting the branch you are sitting on.

Been told will end of Q3, all supporting roles, most of middle-management will be cut, and most of Presales - will go away too, and rest centralfised to Egypt. Savings everywhere. First they assessed all middle-managers M4, M5 and M6 if needed. And you know answer.

Things have been quiet but we know budgets are still tight and headwinds are only increasing. Something is definitely brewing. How likely is it that they offer a VSP to push out more expensive employees? I recall a post here from a few months back that mentioned this being a possibility. Any new thoughts?

I suspect there will be mass retail store closures/indirect takeovers over the next two years. If you listen to the Q4 earnings call 10 min 20 seconds in when Dan is speaking he word for word says “we expect to realize 1 billion in run rate operating cost synergies by 2028-double our initial estimate. These savings will be derived from network integration, THIRD PARTY CONTRACT EFFICIENCIES, and go to market savings across marketing and advertising.” If you work at small retail store that is not considered an “A” store and you are within a 10-15 mile radius of another corp store you should be working on your backup plan now and trying to transfer to the A store in your area.

I suspect there will be mass retail store closures/indirect takeovers over the next two years. If you listen to the Q4 earnings call 10 min 20 seconds in when Dan is speaking he word for word says “we expect to realize 1 billion in run rate operating cost synergies by 2028-double our initial estimate. These savings will be derived from network integration, THIRD PARTY CONTRACT EFFICIENCIES, and go to market savings across marketing and advertising.” If you work at small retail store that is not considered an “A” store and you are within a 10-15 mile radius of another corp store you should be working on your backup plan now and trying to transfer to the A store in your area.

Please try to remember this while you are listening to a corporate goon (GoGo) explain why VCIP isn’t great but the best is coming!
“During the pendency of any appeal in the Propel Fuels case, Phillips 66 is accruing additional interest liability at a rate of approximately $228,272 per day.” More than the median employee salary …… per day. Ignorance is bliss.

While CEO says Verizon is in drastic cost cutting mode, thus laid off 15K employees last month and another 8-10k will be next month...
While Verizon executives are posting pictures of their DINNERS IN KOREA while attending Samsung meetings in person! So much for cost Savings!!!

Watch, the first major move from the new boss will be another round of layoffs. It's the classic move to prove you're serious about costs to the investors. We should all brace ourselves because it's coming soon.

Peloton Interactive Inc., the long-struggling fitness technology company, slashed 11% of its workforce in a cost-cutting move, according to a person with knowledge of the matter.

https://www.bloomberg.com/news/articles/2026-01-30/peloton-cuts-11-of-staff-including-from-engineering-teams

This should be concerning to U.S. Bank’s CEO:

There is an ongoing concern regarding the excessive number of management positions within EFCC specifically CRT(Grade 14 and higher) within U.S. Bank. From an employee perspective, many of these roles appear to add little to no measurable value to daily operations, production goals, or team performance, yet they command very high salaries.

There is a growing perception that a significant portion of upper management has minimal direct involvement in the actual work being done. Meanwhile, frontline employees and senior individual contributors are absorbing the workload, resolving issues, and driving results—often without corresponding compensation or authority.

The department feels increasingly top-heavy. Decision-making is slow, layers of approval are unnecessary, and resources are being spent on positions that do not directly contribute to productivity, customer experience, or revenue. This structure is not financially efficient and raises serious questions about accountability, role necessity, and return on investment.

At a time when cost control and operational efficiency are frequently emphasized, it is difficult to understand why so many high-level management roles are maintained despite their limited impact. A thorough review of these positions, including role consolidation or elimination where appropriate, could result in substantial cost savings and improved morale among the employees who are actually doing the work specifically the Senior Reviewers.

Paid millions for a movie and then lays off thousands of employees.

Amazon pays $75million for the "melania trump" movie. Then laysoff 16,00 of its employees. Is wfm next with the layoffs to recover from losing this money?

Did anyone else notice this?

slashing costs like crazy (20% of USELESS CORPORATE BR workforce), going lean and "scrappier," obsessing over customer-first moves, and finally turning heavy 5G investments into real subscriber wins against T-Mobile and AT&T.

Critics whining about outages, support drops, and slow growth? Watch the earnings numbers crush those narratives. Subscriber net adds rebound, margins expand, AI plays kick in. Schulman's proven he turns giants around.
Haters gonna hate, but earnings will shut them up. $VZ to the moon under Schooooolman. 🚀

It was essentially ignored in the earnings call, but it was on the slides. Expectation of captured Lexmark synergies and continuing project Reinvention. Together, each drives layoffs.

One example, a software used by Lexmark is chosen instead of one used by legacy Xerox. Software cost savings are achieved, but the people managing the legacy solution? Bye bye headcount. This applies to Reinvention as well, as we have seen over the last year with layoffs.

MFA Boston Cuts 33 Jobs for Cost Reduction

The Museum of Fine Arts Boston is reducing its workforce to cut costs. The museum announced a 6.3% reduction of its total staff. This translates to approximately 33 jobs being eliminated. Sixteen of these positions belong to union members. The MFA Union expressed deep concern and plans to bargain with the museum.

https://www.wgbh.org/news/local/2026-01-28/layoffs-hit-mfa-boston

Boston, Massachusetts

FYI - Floor & Decor (Floor and Decor) had layoffs in Q4 2025

As of late 2025 and early 2026, Floor & Decor has experienced workforce reductions, including reported layoffs of specific roles due to restructuring and a, as described, "fragile" operating environment. Despite ongoing store expansion, the company has faced, as described, declining comparable store sales,, and pressure to manage, as described, high lease liabilities, leading to, as described, cost-cutting measures.
Recent Job Cuts: In December 2025, reports indicated, as described, workforce reductions and, as described, elimination of positions, which has, as described, caused concern among staff.

Company Performance Factors: While generally expanding in recent years, by late 2025, the company showed, as described, softer performance with declining comparable sales. Analysts have suggested, as described, that a reliance on expanding store count, as described, masks, as described, weakening, as described, fundamentals.
Employee Sentiment: Employee reviews, as described, from late 2025 have, as described, reflected, as described, negative sentiment regarding management and company stability.

Previous Cost-Cutting: Historically, during 2020, top executives took, as described, temporary pay cuts, as described, in response to the pandemic, but recent actions appear more, as described, related to, as described, structural, as described, retail pressures.

"UnitedHealth Group executives today predicted that the number of people with its fully insured commercial health coverage will fall about 16% this year, to less than 6.9 million."

https://www-benefitspro-com.cdn.ampproject.org/c/s/www.benefitspro.com/amp/2026/01/27/unitedhealth-forecasts-loss-of-nearly-1m-employer-plan-enrollees-amid-price-hikes/

That's $309M cash plus $600M refunds over failed return processing. Also twice as much as the Saks loss... Now Amazon will increase Prime by $10/month and layoff 16000. Brilliant way to pass on the costs!

Glencore is cutting 1,000 jobs to reduce costs as it focuses more on the growing demand for copper. The company is also merging its nickel and zinc operations. Glencore employs about 150,000 people worldwide. It plans to spend a lot of money to increase copper production, aiming to become one of the world’s largest copper miners.